WhatsApp will drop subscription fees

Mobile messaging service WhatsApp, ownedby Facebook Inc, said it will no longer charge annualsubscription fees and plans to test tools to allow users tocommunicate directly with businesses and organizations via theapp.

WhatsApp, which has 900 million users worldwide and worksacross different types of phones, said it does not plan tolaunch third-party advertising to generate revenue.

It only charges an annual subscription fee of 99 U.S. cents or the equivalent, which is waived for the first year, and saidit would end its subscription fees over the next several weeks.

It will test tools that allow users to communicate withbusinesses and organizations on WhatsApp, rather than throughtext messages and phone calls.

"That could mean communicating with your bank about whethera recent transaction was fraudulent, or with an airline about adelayed flight," WhatsApp said on its blog on Monday.

WhatsApp was one of the first apps to let people send andreceive text messages on smartphones, bypassing network charges,making it increasingly popular among younger users. It is facinggrowing competition from messaging app services offered byGoogle among others.