Is WhatsApp Cloud API different from WhatsApp Business API – Yes they are different, Key Differences Explained

Introduction

WhatsApp has become a crucial communication channel for businesses to enable interactive customer engagement, riding on their consumer messaging prowess with over 2.7 billion users globally.

With the WhatsApp Business API and the more recent WhatsApp Cloud API, businesses now have two robust options for integrating WhatsApp into their business workflows.

So what’s the difference between the two, let’s try to delve deep into this and understand better.

What is WhatsApp Business API:

WhatsApp Business API also known as WhatsApp Business Platform, is a tool launched by Meta in 2018 to enable businesses to integrate WhatsApp messaging capabilities into their systems like CRM or other business applications. This helps businesses send and receive messages to their customers at scale.

• The WhatsApp Business API is available for businesses through WhatsApp Solution Providers– Solution Partners aka BSP (Twilio), Tech Partner (Chakra) or Tech Providers.
• Advanced Features (Chatbots, Automation, Multi-agent support, Notifications, Access Control, Shared Chat Inbox, CRM integrations, etc)
• Solution Providers handle the hosting, infrastructure, and compliance

What is a WhatsApp Cloud API:

WhatsApp Cloud API is a cloud-hosted version of the WhatsApp Business API launched by Meta in 2022. In the Cloud API Meta acts as the hosting provider, managing the storage, handling, maintenance, and other updates.

• Required developer expertise for the setup and integrations
• Directly handled by WhatsApp without any WhatsApp Solution Provider
• Relatively Cheaper compared to WhatsApp Business API (hosting and platform are free to access)- although there is a developer resource and effort is needed to set it up
• It can be more time-consuming to setup

Key Differences: WhatsApp Business API vs. Cloud API

Which Solution is better suited for your business?

You should go with WhatsApp Business API if:

✅ You prefer a fully managed solution with some third-party support (WhatsApp Solution Providers)
✅ You want the Solution Provider to handle the hosting, network, compliance, and maintenance.
✅ Your business doesn’t have an in-house developer capability to manage APIs.
✅ Your requirements involved significant integration like CRM, Payments, etc.

Go for WhatsApp Cloud API if:

✅ You want an affordable solution bypassing the platform fee etc involved with Solution Providers
✅ Your business is capable of having in-house technical expertise for API integration.
✅ You have sufficient expertise to handle the product independently to resolve issues

Meta earlier allowed self-hosting via its on-premise WhatsApp API solution. The WhatsApp On-Premises API is now a legacy API that allows businesses to host and manage the WhatsApp Business API client on their own infrastructure, offering full control over deployment and security but is being deprecated in favor of the Cloud API. New signups have been closed since 15 May 2024 and the complete solution will be shelved from 23 October 2025.

How to set up WhatsApp Cloud API?

Step 1: Access Meta’s Developer Portal

• Go to Meta for Developers.
• Log in with your Facebook (Meta) Business Account.

Step 2: Create a New App

• Click "Create App" → Select "Business" → Click "Next".
• Choose "WhatsApp" as the product.
• Enter an App Name (e.g., "My Business WhatsApp") and select your Business Account.
• Click "Create App".

Step 3: Set Up WhatsApp Cloud API

• In your new app dashboard, go to "WhatsApp" in the left menu.
• Click "Set Up" under "Cloud API".
• Accept WhatsApp’s Terms & Policies.

Step 4: Get Your Temporary Access Token

• Navigate to "API Setup" → Copy the Temporary Access Token (valid for 7 days).
• Use this token to test API calls before getting a permanent token.

Step 5: Register a Phone Number

• Go to "Phone Numbers" → Click "Add Phone Number".
• Enter your business phone number (must be able to receive SMS/calls).
• Verify via OTP (SMS or call).

Step 6: Generate Permanent API Token

• After testing, go to "App Settings" → "Basic".
• Under "App Secret," click "Show" and save it securely.
• Generate a long-lived token (under "WhatsApp" → "API Setup").

Step 7: Start Sending Messages

• Use the API endpoint (https://graph.facebook.com/v19.0/) with your token.
• Send test messages using WhatsApp’s API reference or tools like Postman.

Official Doc for WhatsApp Cloud API: Meta’s WhatsApp Cloud API Guide
Issues? Check Meta’s Developer Community for support

Conclusion

So to conclude, WhatsApp Cloud API and WhatsApp Business API are different, and understanding their key differences is crucial for businesses looking to integrate WhatsApp into their communication practice. While both offer systems provide powerful messaging capabilities, the WhatsApp Business API is hosted by third-party WhatsApp Solution Providers, making it a managed service with additional charges for hosting and maintenance in the form of platform fees. WhatsApp Cloud API is directly hosted by Meta, offering a faster, cost-effective, and more scalable solution for businesses with in-house technical expertise.

Eventually, the choice depends on your business needs—if your business prefers a fully managed setup with external support, the WhatsApp Business API is ideal. But if you want a higher degree of control, lower costs, and enough resources to handle the management, the WhatsApp Cloud API is the better-suited option. Both solutions help businesses automate, engage customers, and streamline interactions at scale.