WhatsApp Coexistence: All about WhatsApp Coexistence Mode Pricing and Ways to Optimize Cost

WhatsApp Coexistence, a feature launched by WhatsApp in February 2025, is turning out to be a shot in the arm for most small and local businesses. For these businesses until now, a standalone WhatsApp Business API did not quite fit the bill, or probably has been an overkill + expensive. On top of this, most of these businesses have been using the WhatsApp Business App and are reluctant to do away with it to create a separate business API account. In many cases, businesses find it cumbersome to operate both the business app and the API accounts separately.

Coexistence is an interesting release by Meta, and business owners need to understand the nuances before they get going. In this article, we will attempt to explain how the pricing works for WhatsApp coexistence, how costs can be optimized, and other good practices associated with using WhatsApp coexistence. This is especially important for first-time users of WhatsApp Business API.

Businesses using WhatsApp’s hybrid coexistence mode, simultaneously on the free WhatsApp Business App and the paid Business API via a BSP like ChakraHQ, must understand how conversations are categorized and charged. WhatsApp charges for conversation (a rolling 24-hour chat window) for the business API service. All conversations fall into one of four categories: Marketing, Utility, Authentication, or Service, defined as below:

• Marketing: Promotional messaging, offers, or product announcements. Marketing-type messages are the most expensive of all conversations. Examples include abandoned cart notifications, sale coupons, or birthday offers.
• Utility: Transactional updates or notifications (e.g., order confirmations, delivery updates, payment alerts). These are paid, but generally cheaper than marketing.
• Authentication: OTP or login codes (e.g, account verification, password reset). These are paid and among the cheapest of all message categories.
• Service: User-initiated customer service chats (support inquiries, helpdesk). These are free to businesses.

WhatsApp Coexistence Pricing:

WhatsApp Business App messaging is free to use (except for some premium and advanced features, which are paid). Chats sent or received using the business app are not charged and do not count towards API usage for coexistence mode users. At the same time, Business API conversations are billed as per WhatsApp’s conversation-based pricing for all business-initiated conversations. Business App users remain free as earlier. However, they will have to pay for chats and business-initiated messages in the Cloud API as per the standard pricing model.

Do keep in mind that the free conversations take priority: whenever a customer initiates a chat (service conversation), it is not charged, both on the business app and the API. In contrast, any business-initiated conversation from the API is charged as per its category.

Billing Prioritization: In practice, WhatsApp applies charges by account and conversation. All conversations started by a customer (also known as service conversations) are treated as free. If you respond via API within 24 hours, it remains a service conversation (free under the current policy). In contrast, if a business initiates a message (using a message template) outside of a customer-initiated conversation window, it is treated as a business-initiated conversation that is charged. So, free/user-initiated usage is “applied” first – only non-user-initiated chats incur charges.

• Business App only: If a small business only uses the WhatsApp Business App (NO API), all messaging remains free. No conversation billing applies, since the app is a free channel. (Note: 1. Broadcasting via the app is limited to saved contacts. 2. In the coexistence mode, broadcast lists are disabled.)
  
• API only (ChakraHQ): If you use only the Business API, WhatsApp bills per conversation category. User-initiated conversations (service conversations) incur no charge (unlimited free). Business-initiated conversations (templates) are billed by category: e.g., sending a promotion message opens a Marketing conversation (charged at the marketing template rate), while sending an order-related message starts a Utility conversation (charged at the utility rate).
  
• Both App & API concurrently: In a complete coexistence mode, both channels access the same WABA and synced chats. For ex, a customer might start a chat (visible on the app and CRM), and an agent could reply via either interface. If the reply is via the app, it stays in the free service window. If the reply is made from the API, it still counts as the same service conversation (FREE). However, if the business sends a template at any point (from the API), it will open a new conversation of that template’s category and is chargeable.
  

Ways to optimize the WhatsApp Coexistence mode cost?

• User-initiated (Service) conversations. Encourage customers to initiate chats (e.g., with “Chat with us on WhatsApp” buttons or QR codes). Each incoming chat opens a free 24-hour service window. Within this window, you can exchange unlimited messages (including utility updates) at no Extra charge. Using Click-to-WhatsApp Ads or page CTAs opens up a 72-hour conversation window. For example, if a customer starts a chat, reply with a free-flow text or a utility template (e.g., delivery update notification) during the open window, at zero extra charges.
  
• Use the cheapest category possible. When using the business-initiated templates via the API, choose the category that fits but costs less. For instance, an order confirmation should use a Utility template, not a Marketing one, to take advantage of the lower rate. If sending a login verification code, use an Authentication template (generally the cheapest paid category). Judiciously using the Marketing templates for genuine promotions can significantly optimize your billing.
  
• Properly categorize the templates. Ensure each approved template in Meta’s system is in the correct category. A misclassified template (e.g., calling an order update “Marketing”) could incur higher fees. Routinely audit your template catalog and, if needed, create different templates for transactional vs promotional messages.
  
• Maximize free service conversations: As service conversations are FREE, one thumb rule is to start a service window before sending certain messages. For example, some businesses trigger a bot or agent response to a user’s first message, then follow up with a transactional template while the window is open – in many cases, WhatsApp treats that reply as part of the free service conversation. In a nutshell, try not to expire a user-initiated window without any reply.
  
• Coordinate between channels to avoid duplication. Design an SOP to figure out which channel handles individual interactions. One common practice could be to automate replies using the business API and all free-form replies from the business app. This may prevent sending the same message twice. A clear handover SOP  could help prevent overlapping conversations. This coordination also avoids starting paid conversations with any customer.

Best Practices by Industry:

• E-commerce/Retail/D2C Businesses: Maximize the Utility category of templates. Trigger order and delivery updates as Utility templates (appropriate and cost-effective), and use the service window for other customer inquiries. Use cart abandonment and promotional messages judiciously (Marketing campaigns are expensive).
  
• SaaS/IT/Technology Businesses: Use Authentication message templates for logins/OTPs generation and Utility messages for billing or other notifications. Encourage customers to reach out for support using the free service chats. Selective with feature announcements (consider other communication channels like email or Chat instead of WhatsApp marketing).
  
• Other Service Provider Businesses: Appointment reminders and reservation confirmations are Utility notifications ( low cost). Soliciting feedback or sending promotional offers (e.g., festive offers) would be Marketing. Again, it is best to incentivize customers to reach out on WhatsApp first to open free service windows. Across all sectors, prioritize giving customers reasons to initiate chats (free) and classify outgoing messages in the lowest-cost category possible.

In a coexistence setup using the WhatsApp Business App and API via ChakraHQ, businesses can up their engagement game, leveraging both solutions. This will significantly add to their automation capabilities and organize their communication. They should also focus on reducing the messaging costs through a basic best practices framework or an SOP. Using free service conversations, using appropriate templates, and routing communications through the most cost-effective channels. Encouraging user-initiated chats, using the Business App for free-form replies, and restricting the API for automated or template-driven messages ensures optimal use of WhatsApp’s pricing structure.