In July WhatsApp Business is slashing prices, adding free replies, and launching a powerful new marketing API – challenging SMS dominance and redefining business messaging. Backed by Meta’s global “Not Even WhatsApp” privacy campaign, this move positions WhatsApp as a cheaper, richer, and more secure alternative for enterprise communication. MEF Advisor Nick Millward discusses the implications for the industry.
From July 1st, WhatsApp Business is making bold changes to its pricing model, changes that are set to accelerate its growing dominance in the business messaging space. Combined with Meta’s largest ever privacy focused marketing campaign, businesses are taking notice.
WhatsApp is not just positioning itself as a more secure alternative to SMS, it’s also becoming significantly cheaper in many regions. This shift is expected to disrupt the mobile messaging landscape where SMS has long been the default and push more enterprises toward rich, interactive channels like WhatsApp and potentially RCS.
Meta has launched an all-out offensive under the banner “Not even WhatsApp”, an aggressive, global marketing campaign focused on privacy and security. From billboards to TV ads, the message is clear: WhatsApp is the secure, encrypted, and a modern way for brands to communicate with customers.
This campaign coincides with a major pricing shake-up in WhatsApp Business messaging, effective 1st July:
WhatsApp’s changes are not just about pricing they represent a strategic realignment in how business messaging will function in the future. With free responses, volume-based pricing, and a powerful marketing-focused API, Meta is signalling that WhatsApp is ready to take on both SMS and emerging players like RCS and even Email in the business space.”
- Per-message billing model: Instead of charging based on sessions, WhatsApp will now bill businesses per template message sent.
- Free replies within the customer service window: Businesses will no longer be charged for responding to user messages (utility or free-form) within the 24-hour service window.
- Volume-based discounts: Businesses sending high volumes of utility or authentication messages will enjoy scaled pricing benefits.
- New Marketing Messages Lite API (“MM Lite API”): A streamlined API that introduces automatic delivery optimisations, improved template performance, and upcoming features such as click and read tracking, ROI metrics, and conversion data.
The combination of lower operational costs, richer analytics, and real-time optimisation makes this update particularly attractive for marketers—especially those targeting large user bases in emerging markets where SMS is increasingly cost-prohibitive.
What It Means..
For enterprises, brands, and messaging providers, these changes are more than just pricing tweaks—they signal a strategic shift in the business messaging ecosystem.
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SMS Will Face Increased Competition
SMS is still widely used and remains a vital channel for authentication and time-critical alerts. But it’s showing signs of strain:
- A2P SMS market share is predicted to fall ~15 percentage points within the next five years.
- While total global SMS volumes grew by 30–40% since 2020, recent reports show plateauing or even declining usage in key markets.
- Rising costs are a deterrent—especially when set against WhatsApp’s new pricing incentives.
- With a growing price gap between SMS and WhatsApp, especially in emerging markets, expect a significant migration of messaging traffic to WhatsApp.
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Privacy as a Differentiator
Meta is betting big on privacy messaging. Their “Not Even WhatsApp” campaign emphasises end-to-end encryption (E2EE) and user data protection. It’s a timely move, given increasing regulatory scrutiny and consumer demand for secure communication.
If your business handles sensitive information, or operates in a regulated industry, WhatsApp is making the case that it’s a safer bet than SMS, which lacks encryption and has been plagued by fraud (like smishing).
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Enhanced Tools for Marketing
With the MM Lite API, WhatsApp is now actively targeting marketing use cases—a space traditionally dominated by SMS, email, and recently, RCS. The new features:
- Improve delivery performance with AI-based routing.
- Offer advanced analytics: read rates, click-through rates, conversion metrics.
- Include improved template performance, including time-to-live windows to optimise user engagement.
These are game changers for performance marketers, who previously lacked detailed attribution metrics in channels like SMS.
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Implications for CPaaS and Aggregators
If you’re a CPaaS provider, system integrator, or messaging platform, this shift demands attention. Your clients are watching these developments closely, and many will want to explore how WhatsApp can complement or even replace SMS in their workflows.
This is also an inflection point for RCS, which has been touted as the “next big thing” in rich messaging. With WhatsApp stepping deeper into marketing and customer engagement, RCS must now compete not just on features but on ease of access, pricing, and global reach.
Conclusion
WhatsApp’s changes are not just about pricing they represent a strategic realignment in how business messaging will function in the future. With free responses, volume-based pricing, and a powerful marketing-focused API, Meta is signalling that WhatsApp is ready to take on both SMS and emerging players like RCS and even Email in the business space.
For businesses, the opportunity is clear: reduce costs, enhance customer experience, and stay compliant in an increasingly privacy-conscious world.
For the industry, this may be a defining moment a pivot from legacy SMS toward richer, smarter, and more secure communication platforms.
If you’re not already exploring a WhatsApp or RCS First strategy, now’s the time to start – details from Meta can be found here.
