How to estimate the costs for a Business-initiated or an User-initiated conversation?

WhatsApp Business Platform: Comprehensive Pricing User Education Guide (2024-2025)

Introduction

The WhatsApp Business Platform is undergoing significant pricing updates aimed at improving transparency, aligning with industry standards, and optimizing business messaging costs. Businesses must adapt to these changes to ensure cost efficiency and maximize engagement.

This guide provides a detailed breakdown of:
  1. Current Conversation-Based Pricing (CBP) vs. New Per-Message Pricing (PMP)
  2. Types of conversations and their cost structures
  3. Authentication-International Rates and how they impact pricing
  4. Free Entry Point Conversations and their advantages
  5. Timeline of pricing updates and how businesses should prepare
  6. Best practices to optimize messaging costs and maximize ROI
  7. Edge cases, special scenarios, and how to handle them effectively
  8. Updated rate cards and resources for pricing reference
This document aims to be a one-stop resource for businesses using WhatsApp for customer engagement, helping them understand and strategically manage their messaging expenses.

WhatsApp Pricing Models: CBP vs. PMP

WhatsApp has historically used a Conversation-Based Pricing (CBP) model, where businesses are charged per 24-hour conversation window rather than per message. However, in 2025, WhatsApp will shift to a Per-Message Pricing (PMP) model, which will charge businesses per delivered template message instead of per conversation.

Understanding these models is essential for businesses to adapt their communication strategies effectively.

1. Conversation-Based Pricing (CBP) – Active Until July 2025  

How CBP Works:  
  1. Businesses are charged a fixed fee per 24-hour conversation session, rather than per message.
  2. Once a conversation is opened, all messages exchanged within 24 hours are free for that session.
  3. Conversations fall under four different categories, each with a different cost:
    1. User-Initiated Conversations (UIC) (Service Conversations) – When a customer messages first, businesses can reply for free within 24 hours.
    2. Business-Initiated Conversations (BIC) – When a business sends the first message, it must use a pre-approved template message, which incurs a charge.
    3. Marketing Conversations – Includes promotional messages and special offers sent to customers.
    4. Authentication Conversations – Includes one-time passwords (OTPs) and verification codes sent for user authentication.

2. Per-Message Pricing (PMP) – Starts July 2025  

How PMP Works:  
  1. Businesses will be charged per delivered template message rather than per 24-hour conversation session.
  2. Non-template messages will still be free within a 24-hour customer service window.
  3. Utility template messages sent within 24 hours of a user-initiated message will be free starting July 1, 2025.
Key Takeaway:
CBP was cost-effective for businesses that exchanged multiple messages within a session, but PMP aligns pricing with individual message delivery, making it more predictable for businesses sending outbound messages.

Types of WhatsApp Conversations & Billing Structures  

WhatsApp classifies conversations into four distinct categories, each with different pricing and rules:

1. User-Initiated Conversations (UIC) (Service Conversations)  

A User-Initiated Conversation (UIC) occurs when a customer messages the business first.
  1. Businesses can respond for free within 24 hours.
  2. If the business does not respond within 24 hours, it must use a paid template message to continue the conversation.
Example: User-Initiated Conversation  
  1. Monday, 11 PM: A customer sends a message to a business.
  2. Tuesday, 5 AM: The business replies for free within 24 hours.
  3. Tuesday, 3 PM: The business sends another message, still free (until Tuesday, 11 PM since the UIC window is open).
  4. Wednesday, 2 PM: The customer replies, the business can continue with normal messages until Thursday, 2 PM.

2. Business-Initiated Conversations (BIC)  

A Business-Initiated Conversation (BIC) occurs when a business starts the conversation by sending a pre-approved template message.
  1. The business is charged as soon as the template message is delivered.
  2. If the customer responds within 24 hours, the conversation remains open and free.
  3. If the business wants to send another message after 24 hours, it must send a new template message, which incurs another charge.
Additional Case: What if the customer doesn't respond and the business wants to send another template within 24 hours?  

If the customer does not respond after receiving the first business-initiated message, the business can still send additional template messages within 24 hours. The charge will depend on whether the new template is from the same category or a different category:
  1. The business sends a template of the same category within 24 hours → Does not incur any additional charge.
  2. The business sends a template of another category within 24 hours → Opens a new conversation window for the new category and incurs a separate charge based on the template category.
Example Scenario:
  1. Monday, 10 AM – The business sends a marketing template message to a customer, which opens a paid marketing conversation window.
  2. Monday, 3 PM – The customer has not responded, and the business sends another marketing template → No additional charge (same category within 24 hours).
  3. Monday, 5 PM – The business sends an authentication template message (different category) → A new authentication conversation window is opened, and an additional charge is applied.
Key Takeaways:
  1. If sending multiple templates within 24 hours, keeping them within the same category avoids extra charges.
  2. Switching to another template category within 24 hours starts a new conversation and incurs a charge for the new category.
  3. If the customer responds, all further messages are free within the 24-hour session window. 
Example: Business-Initiated Conversation  
  1. Monday, 9 AM: Business sends a marketing template message → Charged for 1 BIC.
  2. Monday, 11:30 AM: Customer responds → Business can continue messaging for free within 24 hours.
  3. Tuesday, 10 AM: The business responds after 24 hours → A new charge is incurred for a fresh BIC session.

3. Free Entry Point Conversations  

  1. A user messages the business via a Click to WhatsApp Ad or Facebook Page CTA button.
  2. The business responds within 24 hours.
Key Benefits:  
  1. A free entry point conversation lasts 72 hours, eliminating conversation charges during this period.
  2. It closes all other active conversations, allowing businesses to send messages without additional charges.
Free Entry Point Conversation  
  1. 10 AM: A customer clicks a WhatsApp Ad and sends a message.
  2. Business can reply with non-template messages only until 10 AM the next day (24 hours window)
  3. 10 PM: Business responds with a template message → The free entry point conversation begins.
  4. Next 72 Hours: The business can send any template message without charge.

Authentication-International Rates  

1. What Are Authentication-International Rates?  

WhatsApp applies authentication-international rates for businesses sending authentication messages (e.g., OTPs, login verifications) to users in different countries.

2. Countries with Authentication-International Rates  

The following countries have authentication-international rates:
  1. Egypt
  2. India
  3. Indonesia
  4. Malaysia
  5. Nigeria
  6. Pakistan
  7. Saudi Arabia
  8. South Africa
  9. United Arab Emirates

WhatsApp's Pricing Model Comparison

Feature
Coversation-Based Pricing (CBP)
Per-Message Pricing (PMP (May/July 2025
How You Are Charged
One charge per 24-hour session
Charged per delivered template message
Marketing Templates
One charge covers 24 hours
Charged per message
Utility Templates
One charge covers 24 hours
Free within 24 hours, otherwise charged
Authentication Messages
One charge covers 24 hours
Charged per message
Service Conversations
Free for 24 hours
Free for 24 hours

Pricing Updates Timeline (2024-2025)  

July 1, 2025 – Phase 2 Rollout of Per-Message Pricing (PMP) (All Businesses)  

  1. All businesses on WhatsApp Business Platform transition to Per-Message Pricing (PMP).
  2. Businesses are charged per delivered template message instead of per 24-hour conversation session.
  3. Key changes compared to CBP:
    1. User-initiated conversations remain free if responded to within 24 hours.
    2. Marketing, authentication, and utility template messages are now charged per message.
    3. Utility messages sent within 24 hours of a user-initiated conversation remain free.
  4. This marks the final phase of the pricing transition, replacing the Conversation-Based Pricing model for all businesses.

July 1, 2025 – Phase 1 Rollout of Per-Message Pricing (PMP)  

  1. Businesses in Phase 1 transition to Per-Message Pricing (PMP) ahead of the full rollout.
  2. Businesses in this phase are notified in February or March 2025.
  3. Under PMP, businesses are charged per delivered template message, rather than per 24-hour conversation window.
  4. Pricing structure under PMP:
    1. Marketing template messages → Charged per message.
    2. Authentication template messages → Charged per message.
    3. Utility template messages → Free if sent within 24 hours of user's message, otherwise charged per message.

July 1, 2025 – Free Utility Templates Within 24-Hour Customer Service Window  

  1. Utility template messages (e.g., order confirmations, transaction alerts) sent within 24 hours of a user’s message are now free.
  2. Previously, businesses were charged for utility messages regardless of when they were sent.
  3. Utility messages sent after the free 24-hour window closes will still be charged.
  4. This update provides a cost-saving opportunity for businesses that send frequent transactional updates.

Temporary Pause on Marketing Template Messages to US Numbers  

  1. Starting April 1, 2025, WhatsApp will temporarily pause delivery of all marketing template messages to WhatsApp users with US phone numbers.
  2. Affected users are those with a +1 dialing code and a US area code.
  3. This pause is intended to improve the consumer experience in the US, leading to better business outcomes.
  4. Attempting to send a marketing template message to a US WhatsApp number after this date will result in an error.
  5. Businesses targeting US users should adjust their messaging strategy accordingly.

April 1, 2025 – Expansion of Authentication-International Rates  

  1. Authentication-international rates apply in seven additional countries:
    1. Egypt, Malaysia, Nigeria, Pakistan, Saudi Arabia, South Africa, UAE.
  2. Businesses sending authentication messages (e.g., OTPs, login verification codes) to users in these regions will be charged authentication-international rates if:
    1. The business is eligible for authentication-international pricing.
    2. The business is not based in the same country as the recipient.
  3. Businesses that are based in the same country as the user will continue to pay the domestic authentication rate.

November 1, 2024 – Service Conversations are Now Free  

  1. Previously, businesses were limited to 1,000 free user-initiated conversations per month.
  2. Starting November 1, all user-initiated conversations (service conversations) are free, with no limit.
  3. Businesses can respond to customer messages within 24 hours without incurring charges.
  4. If the 24-hour service window expires, businesses must use a paid template message to continue the conversation.

Summary of Key Changes in 2024-2025:

Date
Update
Key Changes
July 1, 2025
Phase 2 Rollout of Per-Message Pricing (PMP)
All businesses transition to PMP, officially ending Conversation-Based Pricing (CBP)
July 1, 2025
Phase 1 Rollout of Per-Message Pricing (PMP)
Businesses in Phase 1 start paying per template message delivered instead of per conversation session.
July 1, 2025
Free Utility Templates (24-Hour Window)
Utility messages sent within 24 hours of user interaction are now free. Utility messages sent after 24 hours will still be charged.
February 1, 2025
Authentication-International Rates Expansion
Seven additional countries now have authentication-international rates for businesses sending OTPs and verification messages.
November 1, 2025

Service Conversations are Free

Businesses can now respond to all user-initiated messages for free, without a 1,000 conversation limit.

The pricing transition requires businesses to adjust their messaging strategies to optimize costs and maximize free messaging opportunities. For detailed pricing by country and category, refer to the WhatsApp Business Pricing page.

Best Practices to Reduce Costs  

  1. Service conversations are now free.
  2. Avoid unnecessary template message charges.
  3. Keep conversations active within the free customer service window.
  4. Click-to-WhatsApp ads provide a 72-hour free messaging window.

WhatsApp Business Rates by Region  

WhatsApp's pricing varies by conversation category and country. To check the latest rates, use the links below:WhatsApp's pricing varies by conversation category and country. To check the latest rates, use the links below:
  1. Rates in USD
  2. Rates in INR
  3. Rates in IDR
  4. Rates in EUR
  5. Rates in GBP
  6. Rates in AUD
Businesses that optimize their messaging strategy, automate responses, and leverage free messaging windows will benefit from lower costs and better customer engagement.
For up-to-date rates and details, visit WhatsApp Business Pricing.


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