Quick Answer: WhatsApp Business App is free for small businesses (1-2 users). WhatsApp Business API is for medium-large businesses needing automation, multiple users, and integrations. Cloud API is Meta's hosted version of the Business API with simpler setup. Choose based on message volume and automation needs.
Three WhatsApp business options exist. Each serves different business sizes and use cases. Choosing wrong costs money or limits growth.
This guide explains what each option does, what it costs, and which businesses should use it.
The Three WhatsApp Business Options
| Feature | Business App | Business API (On-Premises) | Cloud API |
|---|---|---|---|
| Cost | Free | $0-500+/month (BSP fees) | Free (pay per conversation) |
| Users | 1-4 devices | Unlimited | Unlimited |
| Automation | Quick replies only | Full chatbot support | Full chatbot support |
| Message Volume | ~256 broadcasts max | Unlimited | Unlimited |
| Setup Time | 5 minutes | 2-4 weeks | 1-2 days |
| Hosting | Your phone | Your servers or BSP | Meta servers |
| Green Tick | No | Yes (application required) | Yes (application required) |
WhatsApp Business App
What It Is
A free mobile and desktop application for small businesses. Download from App Store or Google Play. Link to an existing phone number.
Features Included
- Business Profile: Display business name, description, address, hours, website
- Quick Replies: Save and reuse common responses (not automated)
- Labels: Organize conversations by status (new lead, pending payment, etc.)
- Catalog: Display products directly in WhatsApp
- Away Messages: Auto-reply when unavailable
- Greeting Messages: Welcome new conversations automatically
- Broadcast Lists: Send to up to 256 contacts (must have your number saved)
Limitations
| Limitation | Impact |
|---|---|
| Manual responses only | Cannot automate conversations with AI |
| 256 broadcast limit | Cannot reach large customer lists |
| 1-4 devices maximum | Team scaling impossible |
| No CRM integration | Manual data entry required |
| No analytics API | Limited performance tracking |
| No chatbot support | Every message needs human response |
Best For
- Freelancers and solo entrepreneurs
- Businesses with fewer than 50 daily messages
- Companies testing WhatsApp before API investment
- Local businesses with repeat customers
Not Suitable For
- Businesses needing 24/7 automated responses
- Companies with multiple support agents
- E-commerce requiring order notifications at scale
- Any business processing more than 100 daily conversations
WhatsApp Business API (On-Premises)
What It Is
The original API solution requiring hosting infrastructure. Businesses either self-host the API or use a Business Solution Provider (BSP) like Twilio, MessageBird, or Vonage.
Features Included
- Unlimited Users: Scale team without device limits
- Full Automation: Build chatbots with complete conversation flows
- CRM Integration: Connect to Salesforce, HubSpot, Zoho, custom systems
- Template Messages: Pre-approved messages for notifications outside 24-hour window
- Interactive Messages: Buttons, lists, CTAs, location requests
- Analytics: Message delivery, read rates, response times
- Green Tick Verification: Official business account badge
- Webhooks: Real-time message event notifications
Costs
| Cost Component | Typical Range |
|---|---|
| BSP Platform Fee | $50-500/month |
| Per-Message Fee | $0.005-0.05 per message |
| Setup/Integration | $500-5,000 one-time |
| Meta Conversation Fees | $0.03-0.15 per conversation |
Limitations
- Complex Setup: Requires technical implementation (2-4 weeks typical)
- BSP Dependency: Locked into provider's pricing and features
- Hosting Requirements: On-premises option needs server infrastructure
- Higher Barrier: Not suitable for businesses just starting with WhatsApp
Best For
- Mid-size businesses with existing BSP relationships
- Companies requiring specific BSP features (Twilio Flex, etc.)
- Enterprises with on-premises hosting requirements
- Businesses already invested in BSP ecosystem
WhatsApp Cloud API
What It Is
Meta's directly-hosted version of the Business API. Launched in 2022. No BSP required. Connect directly to Meta's infrastructure.
Features Included
Everything in Business API, plus:
- No BSP Fees: Direct connection to Meta (no middleman markup)
- Simpler Setup: Embedded signup flow in minutes
- Meta Hosting: No server infrastructure needed
- Direct Support: Access Meta's developer support
- Latest Features: New API features available immediately
- Transparent Pricing: Only pay Meta's conversation fees
Costs
| Cost Component | Amount |
|---|---|
| Platform Fee | $0 (no BSP) |
| Marketing Conversations | $0.05-0.15 (varies by country) |
| Utility Conversations | $0.02-0.08 (varies by country) |
| Service Conversations | Free (first 1,000/month) |
| Authentication Conversations | $0.03-0.10 (varies by country) |
Example Monthly Cost (Singapore):
- 500 customer service conversations: Free
- 200 marketing messages: ~$20
- 100 order notifications: ~$5
- Total: ~$25/month
Compare to BSP: Same volume would cost $100-300/month with platform fees.
Limitations
- Technical Setup Required: Still needs developer implementation
- No Turnkey Solution: Must build or buy chatbot/automation layer
- Phone Number Requirement: Dedicated number (cannot share with personal WhatsApp)
Best For
- Businesses wanting lowest cost API access
- Companies with development resources
- Startups scaling WhatsApp automation
- Any business currently overpaying BSP fees
Decision Framework
Choose WhatsApp Business App If:
- Daily message volume under 50
- One or two people handle all conversations
- No automation requirements
- Budget: $0
- Timeline: Start today
Choose Cloud API If:
- Daily message volume 50-10,000+
- Need chatbot or automation
- Want lowest ongoing costs
- Have development resources (or use platforms like Oxaide)
- Timeline: 1-2 weeks
Choose On-Premises API If:
- Already using Twilio, MessageBird, or similar BSP
- Require specific BSP features
- Have on-premises hosting requirements
- Enterprise compliance needs
- Timeline: 2-4 weeks
Migration Paths
App → Cloud API
Most common upgrade path. Process:
- Apply for Business API access via Meta Business Manager
- Verify business with Meta (requires documents)
- Register phone number (can use same number, will disconnect from app)
- Build or connect automation (chatbot, CRM integration)
- Test and launch
Important: You can migrate your existing WhatsApp Business App number to Cloud API. The app will stop working, but conversation history transfers.
On-Premises API → Cloud API
For businesses wanting to reduce BSP costs:
- Set up Meta Business Manager if not already done
- Register with Cloud API using new or migrated number
- Rebuild integrations against Cloud API endpoints
- Migrate webhooks and automation logic
- Sunset BSP account
Note: API endpoints differ between BSP implementations and Cloud API. Budget 2-4 weeks for migration.
Common Questions
Can I have both Business App and API?
No. A phone number can only be registered with one WhatsApp business product. Choose one.
Does Cloud API support all API features?
Yes. Cloud API has feature parity with On-Premises API. Some features arrive on Cloud API first.
What about WhatsApp Business Platform?
"WhatsApp Business Platform" is Meta's umbrella term for API products. It includes both Cloud API and On-Premises API. Not a separate product.
Do I need a new phone number?
Not necessarily. You can migrate existing WhatsApp Business App numbers to API. However, many businesses prefer a dedicated number to keep personal/business separate.
How do I get the green tick (verified badge)?
Apply through Meta Business Manager after API setup. Requirements:
- Registered business with documents
- Active Meta Business Manager account
- Compliant with WhatsApp policies
- Notable business (varies by region)
Approval takes 2-4 weeks typically.
Implementation with Oxaide
For businesses choosing Cloud API but wanting turnkey automation, Oxaide provides:
- Done-for-you setup: We handle Meta verification, API connection, webhook configuration
- AI chatbot included: Automated responses without building from scratch
- Interactive messages: Buttons, lists, CTAs configured automatically
- Human escalation: Seamless handoff when AI cannot resolve
Our WhatsApp pilot program includes complete Cloud API setup with AI automation. No development resources required from your team.
Summary
| Business Stage | Recommended Option | Monthly Cost |
|---|---|---|
| Just starting (< 50 msgs/day) | Business App | $0 |
| Growing (50-500 msgs/day) | Cloud API + Oxaide | $149-299 |
| Scaling (500+ msgs/day) | Cloud API + Custom | $299+ |
| Enterprise (existing BSP) | Evaluate migration | Varies |
The trend is clear: Cloud API adoption is accelerating as businesses realize BSP fees are unnecessary for most use cases. Start with Cloud API unless you have specific BSP requirements.
For businesses ready to implement WhatsApp automation without the technical complexity, explore our WhatsApp Business pilot program for done-for-you setup.