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

WhatsApp Conversation-Based Pricing Model (Feb 2022)


WhatsApp Business API Pricing Model

In this latest update released by Meta on Feb'22, they are introducing a totally transparent and pay-as-you-use conversation-based pricing (CBP) model. This model drills down the tedious payment process and makes it easier to pay per conversation instead of paying per message.

What is the CBP model?

Instead of charging the customer for every message they send, businesses will now be charged per conversation. In addition, every conversation has a 24-hour messaging window where the customers can send any number of messages.


What are the two types of a business conversation?

WhatsApp Business Platform conversations are of two types and priced differently: A business conversation starts when the first business message in a conversation is delivered, either initiated by the business or in response to a customer's message. Businesses and their customers can exchange any number of messages, including template messages, within this 24-hour conversation session without incurring additional charges.

1. User-Initiated Conversation

A conversation that is initiated as a response to a customer's message. No prior opt-in is required. When your business responds to the customer, a 24-hour customer service window begins. All messages sent back and forth between the customer and the business within this service window are free and associated with this conversation.

2. Business-Initiated Conversation

A conversation that initiates from a business sending a customer a message outside the 24-hour customer service window. Messages that start a business-initiated conversation will require a message template. Once the customer responds to the business's template message, the business can then send any type of message to the customer.

What is the Customer Service Window?

A customer service window is a 24-hour window that starts when a business replies to a customer's message in a user-initiated conversation or sends a template message to the customer to create a business-initiated conversation.
Once a customer service window has commenced, a business can send any type of message to the customer. After this window expires, a new conversation must be initiated by either the customer or the business to start a new customer service window.
Notes
The customer's phone number used to send a WhatsApp message is the "Phone" attribute of the contact. It should ideally be in E.164 format, e.g. +441234123412. It's advisable to have an opt-in before sending this notification.

How does the conversation-based pricing work?

WhatsApp has switched from message-based pricing to a conversation-based pricing model. Businesses are charged per conversation, which will include all the messages in that 24-hour messaging window.
Notes
  • The first 1000 conversations starting on the 1st of every month will be free as per WhatsApp Guidelines. Any free conversations will not be carried forward to the following month if they are unused this month.
  • Additional 3% fee is charged every time credits are purchased.
  • Country-wise cost per Conversation in USD

    Market

    Business-Initiated Rate

    User-Initiated Rate

    Argentina

    $ 0.0526

    $ 0.0316

    Brazil

    $ 0.0500

    $ 0.0300

    Chile

    $ 0.0757

    $ 0.0454

    Colombia

    $ 0.0100

    $ 0.0060

    Egypt

    $ 0.1073

    $ 0.0644

    France

    $ 0.1432

    $ 0.0859

    Germany

    $ 0.1365

    $ 0.0819

    India

    $ 0.0066

    $ 0.0040

    Indonesia

    $ 0.0316

    $ 0.0190

    Israel

    $ 0.0300

    $ 0.0180

    Italy

    $ 0.0643

    $ 0.0386

    Malaysia

    $ 0.0732

    $ 0.0220

    Mexico

    $ 0.0349

    $ 0.0105

    Netherlands

    $ 0.1485

    $ 0.0891

    Nigeria

    $ 0.0516

    $ 0.0310

    Pakistan

    $ 0.0473

    $ 0.0142

    Peru

    $ 0.0598

    $ 0.0179

    Russia

    $ 0.0663

    $ 0.0398

    Saudi Arabia

    $ 0.0325

    $ 0.0195

    South Africa

    $ 0.0280

    $ 0.0168

    Spain

    $ 0.0615

    $ 0.0369

    Turkey

    $ 0.0100

    $ 0.0030

    United Arab Emirates

    $ 0.0316

    $ 0.0190

    United Kingdom

    $ 0.0647

    $ 0.0388

    North America

    $ 0.0147

    $ 0.0088

    Rest of Africa

    $ 0.1208

    $ 0.0363

    Rest of Asia Pacific

    $ 0.0745

    $ 0.0224

    Rest of Central & Eastern Europe

    $ 0.0835

    $ 0.0250

    Rest of Latin America

    $ 0.0706

    $ 0.0423

    Rest of Middle East

    $ 0.0727

    $ 0.0218

    Rest of Western Europe

    $ 0.1324

    $ 0.0397

    Other

    $ 0.0483

    $ 0.0145

    NotesWith the NEW WhatsApp conversation-based pricing model changes (June 2023), customers have to purchase IM credits to start using these business conversations. Each WABA (inclusive of all the numbers associated with that account) gets only 1000 free user-initiated conversations every month.

    Steps to purchase credits

        1. Click the Setup icon ( ) in the top bar.
        2. Under Channels, click Instant Messaging.
        3. On the Instant Messaging page, click Buy Credits.
        4. Specify the number of credits you want to purchase. You will be charged 2 USD per credit, along with a value-added fee of 3% of the cost.
        5. Click Make Payment and make the payment.
    Once paid, your credits will be topped up and will be reflected in the Available Credits section, and you can start sending messages.

    Example:

    When a business (our customer) purchases 2 IM credits - 2*$2 = $4
    Customer has to pay - $4 + 3% VAT charges = $4 + $0.12 = $4.12
    The first 1000 conversations are free for every WABA (Powered by WhatsApp)

    Conversation 1001

    Consider the business initiates a conversation with the customer who messaged 24 hours ago (response to an expired 24-hour session conversation) from Mexico: The cost per conversation is $0.0349.
    So, the balance would be $4 - $0.0349 = $3.9651

    Conversation 1002

    Similarly, if the agent responds to a conversation that the customer initiated in Mexico: The cost per conversation is $0.0105.
    So, the balance would be $3.9651 - $0.0105 = $3.9546

    Customer's available credit balance = $3.9546 (only the charges are deducted for the above mentioned two conversations explicitly after the 1000 free ones). Read about the CBP model.

    Messaging Limits and Tier system



    There are four tiers for a WhatsApp Business Account's phone number:
    Tier 1: Send 1000 business-initiated conversations to individual customers over a rolling 24-hour period.
    Tier 2: Send 10000 business-initiated conversations to individual customers over a rolling 24-hour period.
    Tier 3: Send 100000 business-initiated conversations to individual customers over a rolling 24-hour period.
    Tier 4: Send unlimited business-initiated conversations over a rolling 24-hour period.