Starting June 1, 2023, WhatsApp is changing its pricing of WhatsApp Business API. There will be 3 major changes which we will cover in this article:
- New categories of conversations
- Changes to free-tier conversations (1000 free monthly conversations)
- New multiple conversation category charging
In addition, in this article we will share the changes to the template registration procedure and the best practices to transact to the new pricing.
New Conversation Categories
Instead of user-initiated and business-initiated categories of conversations there will be four new categories:
- Service conversation – same as user-initiated conversation
- Utility conversation – business-initiated conversation initiated by sending a template message (HSM) of category utility
- Authentication conversation – business-initiated conversation initiated by sending a template message (HSM) of category authentication
- Marketing conversation – business-initiated conversation initiated by sending a template message (HSM) of category marketing
Service Conversation
A service conversation is initiated by sending a reply to a user’s incoming message. Basically, it is a new name for user-initiated conversation.
Usage. You will be using service conversations to chat with your clients.
Pricing. There will no changes to the price of service conversations. They will be priced the same as user-initiated conversations.
Service conversations will be eligible for 1000 free monthly conversations
Utility Conversation
A utility conversation is initiated by sending a template message (HSM) of category utility. More info.
Usage. You will be using utility conversation to send your clients a specific, agreed-upon request or transaction or update. Examples:
- Account updates, order updates, loyalty program updates;
- Payment receipt notifications, money transfer confirmations and other financial transactions.
Pricing. Utility conversations will be priced around 30% cheaper than the current business-initiated conversation rate. For example, for Brazil they will be exactly 30% cheaper.
Starting June 1 2023, utility conversations will NOT be eligible for 1000 free monthly conversations.
Authentication Conversation
An authentication conversation is initiated by sending a template message (HSM) of category authentication. More info.
Usage. You will be using authentication conversation to send your clients one-time passwords for account verification, account recovery, transaction authorization, etc.
Pricing. Authentication conversations will be around 35% cheaper than the current business-initiated conversation rate. For example, for Brazil they will be 37% cheaper.
Starting June 1 2023, authentication conversations will NOT be eligible for 1000 free monthly conversations.
NOTE! Authentication templates and pricing will not be available in India until later 2023.
Marketing Conversation
A marketing conversation is initiated by sending a template message (HSM) of category marketing. More info.
Usage. You will be using marketing conversation to send promotions or offers, informational updates, or invitations for customers to respond / take action. Plus any conversation that does not qualify as utility or authentication is a marketing conversation.
Pricing. Utility conversations will be around 20% costlier than the current business-initiated conversation rate. For example, for Brazil they will be 25% costlier.
Starting June 1 2023, marketing conversations will NOT be eligible for 1000 free monthly conversations.
Summary
| Before June 1, 2023 | After June 1, 2023 | |
| User-initiated conversation | ————-> | Service conversation (same price) |
| Business-initiated conversation | ————-> | Utility conversation (30% cheaper) |
| Authentication conversation (35% cheaper) | ||
| Marketing conversation (20% costlier) |
Changes to Free Tier Conversations
Until now all categories of conversations have been eligible for free tier conversations (1000 free monthly conversations). Starting June 1, 2023 only service (user-initiated) conversations will count in this tier. Business-initiated conversations are no longer included in the free tier.
| Category of conversation | Eligible for free tier conversations (before June 1, 2023) | Eligible for free tier conversations (after June 1, 2023) |
| Service | YES (as user-initiated) | YES |
| Utility | YES (as business-initiated) | NO |
| Authentication | YES (as business-initiated) | NO |
| Marketing | YES (as business-initiated) | NO |
Multiple Conversation Category Charging
Conversation charges will be based on template category. When a template is delivered, it opens a new conversation of that category and incurs the charge of that conversation category, unless the template is delivered during an open conversation of that category. For example, if a utility conversation is open and a marketing template is delivered within that open conversation, a new, separate marketing conversation is opened and the marketing conversation charge is initiated.
However, sending multiple templates of the same category within an open conversation will not incur additional charges. For example, a business can send multiple utility templates in an open utility conversation with no additional charges.
Service conversations will still only be initiated when no other conversation window is open and a business responds to a user with a free form message within the 24-hour customer service window. IMPORTANT! If a business replies to a user with a template message or sends a template message in an open service conversation, this opens a new conversation based on the template category.
Example 1. Single Conversation
- Business: sends a utility template message at 12:00 thereby initiating utility conversation
Charges: the business will be charged one utility conversation at 12:00
Example 2. Multiple Conversations of the Same Category
- Business: sends a utility template message at 12:00 thereby initiating utility conversation.
- Business: sends another utility template message at 13:00.
Charges: the business will be charged one utility conversation at 12:00.
Example 3. Multiple Conversations of Different Category
- Business: sends a utility template message at 12:00 thereby initiating utility conversation.
- Business: sends marketing template message at 13:00 thereby initiating a marketing conversation.
Charges: the business will be charged one utility conversation at 12:00 and one marketing conversation at 13:00.
Example 4. Template Messages Within Service Conversation
- Client: sends a message to a business at 12:00.
- Business: replies to this message at 12:05 thereby initiating a service conversation.
- Business: sends a marketing template message at 13:00 thereby initiating a marketing conversation.
Charges: the business will be charged one service conversation at 12:05 and one marketing conversation at 13:00.
| Before June 1, 2023 | After June 1, 2023 | |
| Rules of multiple conversation initiation | Only one category conversation can be going | Several category conversations can be ongoing |
| Charges within user-initiated conversation | No charge for template message sent during open user-initiated conversation | Template message sent during open user-initiated conversation will be charged |
Template Registration Changes
There will also be changes to how templates are registered:
- New template categories
- WhatsApp will update categories of old templates
- Changes to template category registration
New Template Categories
Starting March 31, 2023, there are new categories of WhatsApp templates:
- UTILITY (previously named TRANSACTIONAL) – notification messages (e.g., order status).
- AUTHENTICATION (previously named OTP) – authentication messages with one-time passwords.
- MARKETING (no changes) – marketing messages.
Use new categories when registering templates via dashboard or API. More info on template categories.
Update of Old Categories
Between May 2 and May 5 WhatsApp will update the old categories of templates registered before March 31 . You will receive a notification if the category of your template was changed. The change will not affect marketing templates. If you do not agree with the new template category you can appeal by sending a request to our support team at support@edna.io.
Template Category Registration Changes
Starting May 2, 2023, WhatsApp can change the template category during the template registration if they do not agree with the set category. We will send you an email notification if this happens. If you do not agree with the new template category you need to change the template and send it to the registration again.
Best Practices for New Pricing
We recommend to do the following in order to avoid extra charges and get the best value from your WhatsApp usage:
- Check all your template categories before June 1, 2023. This will help you to plan budget after the pricing change takes place.
- Select the correct category when you register a new template.
- Plan your budget based on the registered category of the template. Be aware of the notification we send you if the template category was changed by WhatsApp.
- Use free-form (non-template) message if you want to send notifications while 24-hour user-initiated conversation is still going on. That way, you will avoid paying extra for additional business-initiated conversations.
- Use interactive messages (reply buttons and interactive menu) if you want to send buttons to a client within the ongoing chat. That way, you will avoid paying extra for additional business-initiated conversations.
FAQ
| Question | Answer |
| Why does WhatsApp make these changes? | WhatsApp believes that the new pricing best describes the value and use cases that the business gets from sending template messages. |
| Why are marketing conversations getting more more expensive? | The value that business gets from sending marketing template messages is much higher than the current price. So, WhatsApp decided to reflect this on pricing. |
| Why are utility and authentication conversations getting cheaper? | WhatsApp decided to differentiate outbound traffic like SMS. To implement this differentiation they lowered utility and authentication prices and increased marketing prices. |
| Will I be paying more after June 1, 2023? | It depends on how you use WhatsApp Business API. If you use WhatsApp to chat with your clients or to send service notifications you will be paying the same or lesser. If you do marketing outbound campaigns you will probably pay more. |
| Will there be any changes in the dashboard? | Yes. We will show you the charges based on the new conversation categories. |
| Will there be any changes in the API? | No. Except for the API to create templates where you need to use new template categories. |
| How does WhatsApp decide the category of the template? | There are several factors described here. |
| Will there be any changes in subscription fees? | No. |
| How does WhatsApp understand whether a business sends free-form or template message during opened user-initiated conversation? | Based on whether the message corresponds to the registered template. If a message corresponds to the registered template, WhatsApp considers it as a template message. |