A Comprehensive Guide to the WhatsApp Cloud API in 2023

Boost your messaging impact in 2023 with our WhatsApp Cloud API guide - latest features & optimization strategies.
February 28, 2023
Balakrishnan
Product Marketing Manager, Donut.cx

A Comprehensive Guide to the WhatsApp Cloud API in 2023

WhatsApp API is the cool kid on the block, with its impressive open rate and solid conversion rate. Over 50 million businesses are already riding the WhatsApp wave, tapping into its massive user base to increase sales and provide top-notch customer support.

There’s no hard secret that Businesses can access WhatsApp Business API through various methods, including On-Premises, On-Cloud, Sign-up, or conversational commerce integration.

If you're a business owner that likes to do thorough research on all options or already has a specific choice of WhatsApp Cloud API and wants to learn more, this blog is for you!

We've put together an ultimate guide that covers all the important topics like benefits, features, how to gain access, differences between on-premises & on-cloud, and any limitations you should be aware of.

What is WhatsApp Cloud API?

WhatsApp Cloud API is a cloud-based version of the WhatsApp Business Platform that offers various features like automation, chatbots, and customer support. It eliminates the need to host your servers and helps businesses improve their customer communication and enhance customer service.

The WhatsApp Cloud API release date is May 19, 2022. 

The default message sending and receiving rate for text and media messages on WhatsApp Cloud API is 80 messages per second (MPS), which can be increased to 500 MPS upon request.

WhatsApp Cloud API provides analytics and conversation metrics for your WhatsApp Business Account (WABA), including message and conversation counts.

WhatsApp Cloud API secures WhatsApp messages with Signal protocol encryption during device-to-device transmission and uses industry-standard encryption methods to protect data in transit and at rest.

Key Features of WhatsApp Cloud API

WhatsApp Cloud API offers several key features that enable businesses to communicate with their customers more effectively. These features include:

  • Automatic Software Upgrade

Meta performs API software upgrades for WhatsApp Cloud API.  All new features and security updates are available automatically on the Cloud API.

  • Support Bulk Messaging

The Cloud API supports up to 80 messages per second (MPS) by default and up to 500 MPS upon request, making it suitable for high-volume messaging applications.

  • Multi-tenant

WhatsApp Cloud API is Multi-tenant, i.e., Multiple phone numbers can be registered on CAPI.

  • No Hosting Cost

For WhatsApp Cloud API, Meta pays for the hosting costs. Businesses only pay per message sent or conversation, per the rules

  • Conversation Analytics

With conversation analytics, businesses can gain insights into their WhatsApp Business Account (WABA) performance. This includes message delivery rates, response times, and other vital metrics.

  • Enables Multi-media sharing

The API supports sharing media files such as images, videos, and documents in addition to text messages.

  • End-to-End Encryption

Every WhatsApp message sent through the Cloud API is secured with end-to-end encryption, ensuring that messages are protected from unauthorized access.

Benefits of WhatsApp Cloud API

The WhatsApp Cloud API provides businesses with several benefits that enable them to improve customer communication and engagement. These benefits include:

  • Increased Reach

With over two billion active users, WhatsApp is one of the world's most widely used messaging platforms. By using the Cloud API, businesses can leverage this reach to connect with customers on a platform they already use.

  • Improved Customer Engagement

By enabling two-way communication and providing personalized messaging, businesses can engage with customers more meaningfully, leading to improved customer satisfaction and loyalty.

  • Enhanced Automation

With messaging templates and automated messaging workflows, businesses can reduce response times and streamline customer service, increasing efficiency and reducing costs.

  • Valuable Insights

Conversation analytics provided by the Cloud API allows businesses to gain valuable insights into customer behavior and preferences, improving their messaging strategies and providing more personalized experiences.

  • Secure Communication

The Cloud API employs industry-standard encryption techniques to protect messages from unauthorized access, providing businesses and their customers with added security.

  • Scalability

The Cloud API within Meta's infrastructure automatically scales and adapts to manage your workload while staying within your rate limit for messaging volume and several WhatsApp business accounts.

Steps to get access to WhatsApp Cloud API

Here's a summary of the steps needed to set up WhatsApp Cloud API and WhatsApp Business Management API:

  • Set up Developer Assets and Platform Access
  1. Register as a Meta Developer and enable two-factor authentication for your account.
  2. Create a Meta App by visiting developers.facebook.com > My Apps > Create App. Select the "Business" type and follow the prompts on your screen.
  3. From the App Dashboard, click on the app you would like to connect to WhatsApp. Scroll down to find the "WhatsApp" product and click Set up.
  4. Choose to select an existing Business Manager or have the onboarding process create one automatically for you.
  5. Once you select and click Continue, your app will be associated with the Business Manager account. A WhatsApp Business account will be generated.
  6. A test business phone number will be created, and you can use it with the API to send messages to up to five recipient phone numbers.
  7. Finally, you'll be redirected to the WhatsApp Getting Started (or Setup) panel in the App Dashboard.
  • Send a Test Message

To send a test message using the Cloud API WhatsApp or WhatsApp Business Management API:

  1. Go to the WhatsApp Getting Started (or Setup) panel.
  2. Select your test phone number in the From field.
  3. Enter the recipient phone number you want to message in the To field.
  4. Follow the prompts on the screen to verify that you have access to the phone number.
  5. Once you add a phone number, it cannot be removed from your five possible message recipients list.
  6. The code sample on the page will be updated to show an API call that sends a pre-approved message template to the recipient's phone number.
  7. Click Send a message to send the first message.

Steps to Configure a Webhook for your WhatsApp Cloud API

To receive alerts when you receive a message or when a message's status changes using the Meta WhatsApp Cloud API or WhatsApp Business Management API, you need to set up a Webhooks endpoint for your app. Here are the steps:

  1. Create the endpoint by creating a custom Webhook URL running on a web server or using services like Glitch.
  2. Go to your App Dashboard and find the WhatsApp product. Click Configuration, then find the webhooks section and click Configure a webhook.
  3. Provide the Callback URL (the URL where Meta will send events) and the Verify Token (a string you set up when creating the webhook endpoint). Click Verify and Save.
  4. In the App Dashboard, go to WhatsApp > Configuration in the left-side panel, and click Manage under Webhooks.
  5. To receive messages from your users, click Subscribe for messages in the dialog box.

Setting up Webhooks doesn't affect your phone number's status, and you can continue to send and receive messages normally.

What is WhatsApp Cloud API Pricing?

Using the Cloud API or On-Premises API does not impact messaging prices for businesses. The WhatsApp Business Platform charges businesses based on the conversation category per 24-hour conversation. For WhatsApp Cloud API pricing, the first 1,000 conversations each month are free. You need to add a credit card to your account to send more than 1,000 conversations. 

However, the Cloud API has cost-saving benefits, such as reduced set-up costs (server or external cloud provider costs) and ongoing maintenance costs (including engineering time for API upgrades).

Get the rate cards for utility, marketing, and service conversations effective June 1, 2023, by downloading them from this link: USD Rate Card

WhatsApp Cloud API sets rate limits for business use cases. Each WhatsApp Business Account has a one-hour limit on the number of calls an app can make to business accounts. The call count limit is 1800000, i.e., they are the maximum number of calls allowed within the one-hour window.

Besides platform rate limits, Meta has the following rate limits applicable to Cloud API accounts:

Limitations of WhatsApp Cloud API

Discover the limitations of using WhatsApp Cloud API for your business and learn more about them to make informed decisions.

  • Limited Outgoing Messages

In Cloud API WhatsApp, Incoming messages are unlimited, but there are limits for outgoing messages. Outgoing messages are limited by message rate limits, which are determined by the country where your app is located.

You can check your current messaging limits in the WhatsApp Manager > Overview Dashboard > Insights tab:

  • Restricted Payment Options

The credit card payment method for Meta WhatsApp Cloud API  is only available in certain countries. Six currencies are available for payment: USD, AUD, EUR, GBP, IDR, and INR. You can only pay with a credit card if you are in a country listed in the Business Manager Supported Countries. Supported Countries for WhatsApp Business Credit Card Billing help center article.

Difference between On-Premise and WhatsApp Cloud API

Here's a concise table comparing the key differences between the On-Premises API and the Cloud API:

Key Differences On-Premises API WhatsApp Cloud API
Hosting Businesses/BSPs host the API software on their servers and data centers. Meta hosts the API.
Maintenance Businesses/BSPs need to perform API software upgrades periodically. Meta performs API software upgrades, and new features and security updates are automatically available.
Developers Businesses/BSPs need to set up, maintain and scale the API. Developers must adapt to longer-term API changes. Developers no longer need to set up, maintain or scale the API. Minimal code changes are required to adapt to API changes.
Costs Businesses/BSPs pay the costs of setting up and maintaining their servers. Pay per message sent or per conversation. Businesses pay per message sent or conversation.
Message Throughput (per second) Send up to 70 text messages per second for single-connect. Send up to 250 text messages per second for multi-connect. Up to 500 messages per second combined sending and receiving of text and media messages.
Certificate Management Businesses manage their Certificate Authority (CA) and Webhook CA certificates. Meta manages the CA certificates.
Disaster Recovery Businesses/BSPs deploy in a "high availability" model. No SLA. Meta provides disaster recovery.
Single-tenant vs. Multi-tenant Single-tenant (single phone number per deployment). Multi-tenant. Multiple phone numbers can be registered on CAPI.
Server Location Dependent on business. North America.
Monitoring Metrics Available Insights data available. Businesses are responsible for setting up monitoring. Insights data available. Meta monitors instance health.
Support 7x24 for critical issues on a best-effort basis. 7x24 for critical issues. Continuous work until the issue is resolved or mitigated.

Which one is the better choice: On-Premise or Cloud API?

The choice between on-premise and cloud API depends on various factors such as cost, security, scalability, maintenance, and performance.

On-premise API is hosting the API on local servers or within an organization's infrastructure. This approach requires a significant initial investment in hardware and software and ongoing maintenance and upgrades. On-premise API provides full control and customization over the infrastructure, but it may not be suitable for organizations with limited resources or IT expertise.

Cloud API, on the other hand, refers to hosting the API on a cloud platform such as Amazon Web Services, Microsoft Azure, or Google Cloud Platform. This approach offers several advantages: lower upfront costs, greater scalability, and easier maintenance. Cloud API also provides greater flexibility, allowing organizations to adjust resources based on usage and demand.

In terms of security, both on-premise and cloud API can be secure, but cloud API offers additional benefits such as automatic updates, built-in security features, and disaster recovery options. Cloud providers have teams of security experts who monitor and address potential threats, which can be more challenging for organizations to manage independently.

In terms of performance, on-premise API may offer better latency and response times as it is closer to the end-users. However, cloud API can also provide high-performance capabilities using content delivery networks (CDNs) and other optimization techniques.

In summary, the choice between on-premise and cloud API depends on various factors such as the organization's resources, IT expertise, security needs, scalability requirements, and performance goals. While on-premise API provides greater control and customization, cloud API offers greater flexibility, scalability, security features, and lower upfront costs. Organizations must carefully evaluate their needs and priorities to make the best decision for their use case.

Click here for Cloud API FAQ on Meta Page.

How to get a WhatsApp API Account easily using Donut.cx?

Donut.cx is Whatsapp's first omnichannel engagement platform that enhances the platform's efficiency for your business by providing improved automation and analytics assistance, as well as allowing you to build meaningful sales campaigns to increase revenue.

Donut.cx is Whatsapp's first omnichannel engagement platform that enhances the platform's efficiency for your business by providing improved automation and analytics assistance and allowing you to build meaningful sales campaigns to increase revenue.

Key features of Donut.cx are

  • Omnichannel Team Inbox empowers your team with smart routing, filters, and customer context.
  • Order Management system lets you create, edit and cancel orders within the messaging channel
  • Scale your business through relevant contextual broadcasts created within minutes and promote product sales on launches
  • Create personalized and interactive templates using variables and interactive buttons within minutes.
  • Monitor and derive insights from the performance of your Broadcasts

The procedure for obtaining the WhatsApp Business API and integrating it with Donut.cx is as follows-

  • Step 1: Open “Integration” on the Setting menu and click WhatsApp
Step 1: Open “Integration” on the Setting menu and click WhatsApp


  • Step 2: Make sure that you meet all the prerequisite requirements to connect with the WhatsApp Business API. 
Step 2: Make sure that you meet all the prerequisite requirements to connect with the WhatsApp Business API.
  • Step 3: You will be directed to Facebook to connect your Facebook Business Manager account.
Step 3: You will be directed to Facebook to connect your Facebook Business Manager account.
  • Step 4: After completing all the requirements on Facebook Business Manager, copy the number you will use, select WhatsApp or SMS, and click " Verify Code".
Step 4: After completing all the requirements on Facebook Business Manager, copy the number you will use, select WhatsApp or SMS and click " Verify Code".
  • Step 5: After receiving the notification code, input it and click “Verify”.
Step 5: After receiving the notification code, input it and click “Verify”.
  • Step 6: Now your WhatsApp is connected with Facebook Business Manager! Complete your WhatsApp Business Profile and click “Save”
Step 6: Now your WhatsApp is connected with Facebook Business Manager! Complete your WhatsApp Business Profile and click “Save”
  •  Step 7: You have successfully connected your Donut with WhatsApp!
 Step 7: You have successfully connected your Donut with WhatsApp!

Now you can start interacting with your WhatsApp customers effectively with Donut.cx Chat Widget.

How to create a WhatsApp API Broadcast using Donut.cx

With Donut.cx, you can send personalized messages to multiple users in one go using WhatsApp API Broadcasts. Create your first broadcast with the steps below.


Step 1: Go to “WhatsApp Broadcast” → “Create Broadcast”

Step 1: Go to “WhatsApp Broadcast” → “Create Broadcast”


Step 2 : Give your broadcast a Name, then schedule a time and date. Add Notes (optional) with context around what this broadcast is for and who will receive it. Click Next when you are done.

Step 2 : Give your broadcast a Name, then schedule a time and date. Add Notes (optional) with context around what this broadcast is for and who will receive it. Click Next when you are done.


Step 3: Select the template that you want to broadcast. You can create a new template by following the steps here.

Step 3: Select the template that you want to broadcast. You can create a new template by following the steps here.


Step 4: Upload your customers’ contact list to whom you wish to broadcast the message. You can upload an .XLSX or CSV file. You can download and fill details in the template file. 

Step 4: Upload your customers’ contact list to whom you wish to broadcast the message. You can upload an .XLSX or CSV file. You can download and fill details in the template file.


Step 5: Verify your details once again. Click on “Schedule Broadcast” to schedule your broadcast for delivery at the aforementioned time.

Step 5: Verify your details once again. Click on “Schedule Broadcast” to schedule your broadcast for delivery at the aforementioned time.

Step 6: You will receive a pop-up to notify you that your broadcast is successfully scheduled. You can see your newly created broadcast in the “Planned broadcasts” list.

Step 6: You will receive a pop-up to notify you that your broadcast is successfully scheduled. You can see your newly created broadcast in the “Planned broadcasts” list.


Conclusion

“Meta recommends that the majority of businesses use the Cloud API due to ease of implementation and maintenance.”

While Meta Whatsapp cloud API has more advantages in some areas, and the process of obtaining Cloud API WhatsApp is also simple, there's no need to hesitate any longer. We give you a big thumbs up to start utilizing WhatsApp Cloud API for your business.

Still, do not take the plunge without considering your business size and nature, message types, automation needs, team technical capabilities, and industry compliance before using WhatsApp Cloud API. Also, weigh the potential benefits of increased engagement, improved customer service, and streamlined communication.

Take a breather, analyze your requirements carefully, and don't worry because our WhatsApp Cloud API ultimate guide is always here to lend a hand!

Transform your business with Donut.cx - the omnichannel platform for instant, contextual engagement and sales on WhatsApp, featuring a multi-agent inbox for efficient support and powerful WhatsApp broadcasts to drive purchases!

Book A Demo Today!

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