The WhatsApp Business API: The ultimate business guide

As a company, you want to use WhatsApp for customer communication, but don’t know how to implement it in a secure and scalable way? That’s exactly what the WhatsApp Business API is for. We explain how it works, what advantages it offers, and what you can expect in terms of costs.

Your customers want to communicate with you via WhatsApp and you see great potential to reach them better, improve customer satisfaction, and relieve your customer service. At the same time, you’re wondering how you can implement this in a scalable and professional way? Then you need the WhatsApp Business API (officially: WhatsApp Business Platform)!

But what exactly is the WhatsApp Business API? What’s the difference between the regular WhatsApp app, WhatsApp Business, and the API? How much does it cost? And how do other companies use the platform? In the following guide, we explain everything you need to know about the WhatsApp Business API.

When WhatsApp originally came out, the messenger app was intended for personal use only, for example to send messages, videos, and photos to friends and acquaintances.

But in 2018, Meta opened up the application for commercial use as well. Since then, there have been two options for companies to use WhatsApp for customer communication: the WhatsApp Business App and the WhatsApp Business API. The Application Programming Interface, which provides direct access to the WhatsApp system, has officially been called “WhatsApp Business Platform” since 2022.

⚠️ Important: You still can’t use the regular (personal) WhatsApp app commercially! 

That leaves your company with WhatsApp Business as one option and the WhatsApp Business API as the other one. So, what’s the difference between the two? 

WhatsApp Business

Simply put, WhatsApp Business is an app for companies that want to use WhatsApp commercially. You can download it to your smartphone, and it works similar to the regular WhatsApp app. 

The business app is free for customers and companies and offers:

• a business profile
• options to post company information like business hours, product catalog or contact information 
• some limited auto-reply features (no templates!)
• broadcasting lists (maximum of 256 unique users per list)

As the WhatsApp Business App is a regular smartphone app, you aren’t connected to the WhatsApp interface, which is why the features on the free app are more limited. 

Some limitations of the Business App are: 

• you can’t scale promotional messages
• no green tick possible
• you can only connect with one smartphone at a time
• no chatbot integration
• no CRM integration
• not compliant with data regulations

As WhatsApp Business was never designed for mid-sized or large companies, but mainly for freelancers and small businesses, one of the biggest issues for companies with the WhatsApp Business App is usually the lack of scalability. WhatsApp is popular with customers, but once you start getting more messages on WhatsApp, you won’t be able to automate processes nor scale campaigns. 

You can upgrade some features (like send on-to-many messages), but then you have to pay, and compared to the API, you still don’t get very much out of it. 

That’s typically where most switch to the WhatsApp Business API (WhatsApp Business Platform).

🚀 Make the switch now, and scale your business with a professional WhatsApp solution!

Try Sinch Engage for free

WhatsApp Business API (WhatsApp Business Platform)

API stands for Application Programming Interface and provides businesses with an interface to the WhatsApp Business platform. In 2022, Meta renamed the WhatsApp Business API to WhatsApp Business Platform. 

The interface has a lot more business features than the free business app. 

• you can get a verified profile (green tick)
• it’s possible to send unlimited bulk messages 
• you get access to automated templates
• it’s possible to create and reach specific target groups for promotional messages
• you’ll be able to connect chatbots
• you can integrate CRM and payment systems

Let’s take a closer look at the additional features the WhatsApp Business Platform offers. 

Messages to customers

When you use the WhatsApp Business Platform, you have more options for sending out messages to customers.

For starters, you start off with a minimum of 1,000 bulk messages! That’s a lot more than the 256 users on the free app. Depending on the quality of your campaign, you can further scale this to potentially sending an unlimited amount of bulk messages on WhatsApp. And make no mistake: WhatsApp will block your account if you send more than the allowed limit on the WhatsApp Business App!

You also get access to templates, and can easily send and automate broadcasts, promotional messages, and one-to-many notifications. There are also ways to set up very specific target groups for more personalized campaigns. 

For even more automation, you can also add chatbots that can answer FAQs for you, and save you a lot of time! 

💡WhatsApp broadcast for companies: Everything you need to know

And: on the API, you get access to analytics tools where you can measure and optimize your campaigns. 

Business profile and green tick

A business profile includes your company name and logo, and some additional company information you want to add. While both, the Business App and the API let you set up a business profile, you can only get the verification (green tick) with the API. 

Without the green tick, users can only see that you’re a business if they have already added you to their contacts. 

That’s an issue if you’re initiating a conversation because the end users will only see an unknown number, and possibly identify it as spam, ignore it, or (as they now can) block unknown numbers! 

With the green tick, on the other hand, they can see your company name and logo, even if you’re not in their contact list. That establishes more trust, and you’ll reach a lot more users with promotional messages.

Only companies that use the WhatsApp Business Platform can get the green tick. There’s no guarantee that Meta will give you the green tick, but if you work with an official WhatsApp partner (Business Solution Provider), your chances are usually very good, and the verification typically is very fast. 

💡Read how to get the green tick on WhatsApp

Integrations

If you want to use WhatsApp professionally for your business, chances are you want to: 

• work with WhatsApp chatbots for customer service and lead generation
• link your customer relationship management tools to WhatsApp, so you can collect and save customer data
• set up payment solutions for e-commerce and in-chat payments

All of these are only possible with the API. 

On the WhatsApp Business API, your customers don’t have to pay anything, but businesses are charged by WhatsApp for the messages they send. 

The cost per message depends on: 

1. the type of message
2. the country code of the user’s phone

As of 2023, WhatsApp differentiates between four types of messages: 

1. Utility conversations: Business-initiated conversations relating to a transaction, including post-purchase notifications and recurring billing statements to customers who have opted in.
2. Authentication: Business-initiated conversations that enable businesses to authenticate users with one-time passcodes at multiple steps during the login process, such as account registration, account recovery, and integrity challenges.
3. Marketing conversation: Business-initiated conversations to market a product or service to customers, such as relevant offers to customers who have opted in. Any business-initiated conversation that doesn’t qualify as an authentication or utility conversation would also fall under this category.
4. Service conversations: Any exchange following a user-initiated conversation, such as chats to resolve a customer inquiry.

The pricing for India (in Indian rupees, INR) is: 

• Marketing: 0.7265 INR
• Utility: 0.3082 INR
• Service: 0.2906 INR

Authentication prices have not been determined yet for India (as of July 2023).

Some notes on the WhatsApp Business pricing: 

• Messages (conversations) are calculated in 24-hour windows, so you only get charged for a new message 24 hours after a user has received your notification.
• You can send more than one message in that 24-hour window.
• If a user clicks on a click-to-WhatsApp ad, that window expands to 72 hours.

Data protection

Note that the only way to ensure 100% compliance with the strictest data laws is through the API. As the WhatsApp Business App runs through a smartphone, syncs contacts without their prior consent, and sends personal data to Meta that is also processed in the US, it’s violating several data regulations, such as the Indian IT Act, the GDPR, the Data Protection Act in the UK, and several consumer protection acts in the US. 

With the API you can set up a separate IT environment to process customer data and guarantee data privacy. 

The API is in theory available to anyone. In practice, however, it requires IT skills and legal know-how to build your own software around it, set up chatbot integrations, connect CRM systems, and ensure data protection. 

The other (and much easier) option is to use a WhatsApp Business software by a WhatsApp Business Solution Provider (BSP). A BSP is an official Meta partner that has the authorization to offer professional WhatsApp solutions to businesses. 

There are a lot of companies that claim to be BSPs, but don’t have, in fact, permission to offer business solutions for WhatsApp. This can get your account blocked, and make customers lose trust in your business! So always double-check the Meta partner directory to be sure! 

As one of the first Meta BSPs, Sinch Engage has years of experience in bringing professional messaging solutions to businesses around the world. Our all-in-one platform offers you a ready-to-go software that lets you use the WhatsApp Business API (and other messaging apps like Facebook Messenger or Telegram) right away. 

It already comes with all the integrations and set-ups you need for using WhatsApp in marketing, sales, HR, and customer service. And you can even build your own chatbot in a few minutes (or use pre-built chatbot templates for selected industries). 

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BQ Prime: More readers with WhatsApp broadcast

The Indian business publication BQ Prime was looking for a way to get more traffic to their website and to deliver relevant finance news to their readers faster. After all, BQ Prime’s finance readers want stock market and finance-related news as fast as possible, without having to search for it. 

With WhatsApp Business, BQ Prime wouldn’t have been able to send out a broadcast to their thousands of readers. So, they partnered with Sinch Engage and ended up reaching 225,000 readers with their broadcast… twice as many as originally planned! 

Khimji Ramdas: Better conversions with WhatsApp payments

Khimji Ramdas is a leading company in the Sultanate of Oman, representing more than 100 leading global brands for several consumer products. In order to make the shopping process smoother, Khimji Ramdas went for a professional WhatsApp Business solution with Sinch Engage where they could combine a product search with a chatbot and a payment link. 

Customers can now easily search for products, get shopping inspiration from the bot, and also place an order and pay. 

Orion Mall: More shoppers through WhatsApp

Bangalore’s Orion Mall uses the WhatsApp Business API in several ways, and thus gets the most out of the platform. 

They work with a WhatsApp chatbot, Genie, to answer frequently asked questions about their mall. 

And they also set up a WhatsApp newsletter where visitors can keep up to date with the latest events at the mall. This has helped them make their service more efficient and also get more visitors to the mall. 

Yellow Class: Improve sign-ups for classes with WhatsApp chatbot

Yellow Class is an online education platform in India that offers live and engaging hobby classes for children. Their popular classes attract many new customers who want to learn more about the service. Because of the high number of queries, Yellow Class started to look for an automated solution to handle these questions.  

Together with Sinch Engage, they developed a WhatsApp bot on the WhatsApp Business API with various reply buttons to help answer the most frequently asked questions faster. More complicated requests are transferred to human agents.  

The combination of WhatsApp bot and human agents has made Yellow Class’ sign-up process faster, smoother, and easier. 

The WhatsApp Business Platform (API) is the right choice if you want to scale WhatsApp for your business. All the examples above are only possible with the API! 

The easiest way to get started with the API or switch from the Business App (you can even keep the same number and your chat history!) is to use a professional business solution like Sinch Engage. Contact us on WhatsApp