Meta is introducing its Novi digital wallet on its encrypted messaging app WhatsApp in the United States, following an initial trial period.

A limited number of people in the US can now send and receive money through Novi on WhatsApp, according to Novi head Stephane Kasriel. He underscored that many people use WhatsApp to coordinate remittances, which Novi now enables them to perform instantly within the app without any fees and end-to-end encryption.

This wider release comes on the heels of the Novi pilot, which launched six weeks ago. Over that time, Kasriel said his team were able to test different functionalities and learn which features users gravitated towards most, focusing their efforts on usability. For instance, people will be able to make payments directly in their chats. Kasriel concluded that this would be limited to a single market for the time being, but would ostensibly be expanded following further feedback.

However, as the Novi project noticeably picks up steam, scrutiny has also intensified, with some regulators urging Meta to suspend the project. Earlier this week, Americans for Financial Reform and Demand Progress and the Open Markets Institute called for an investigation into the Novi digital wallet by the U.S. Department of Justice and other regulatory bodies. 

It would focus on whether Meta is accepting deposits despite lacking a banking charter approved by the Office of the Comptroller of the Currency. Charters detail how banks can ensure compliance with regulations, thus enabling them to operate legitimately. While Novi may lack this qualification, it does hold a license to operate as a money services business under U.S. federal law, with an additional money transmitter license in 38 states and the District of Columbia. 

While the investigation may only call for the project to be put on hold, other US authorities have taken stronger positions. In October, a group of Democratic Senators from the US Senate urged at-the-time Facebook to discontinue the Novi pilot project and cease plans to bring it to market.

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The post Meta’s WhatsApp to Debut Novi Digital Wallet in United States appeared first on BeInCrypto.

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