How does whatsapp make its money? And how much has it made and how much is it worth?

As reported by Thestreet.com, the popular messaging app, which announced in 2016 that it had reached a billion users, eliminated its 99-cent annual subscription fee that was charged to users after a year of free service.

In a Jan. 18 blog post explaining the change, Jan Koum, WhatsApp's co-founder and CEO, said instead of featuring third-party ads to make money, the company would be experimenting with business-to-customer services.

"That could mean communicating with your bank about whether a recent transaction was fraudulent, or with an airline about a delayed flight," wrote Koum.

Facebook (FB) purchased WhatsApp in February 2014 for approximately $19 billion, and according to the 2014 Facebook Form 10-Q, in the nine months preceding 30 September 2014, WhatsApp generated revenue of $1,289,000.

WhatsApp was founded in 2009 by Brian Acton and Jan Koum as an alternative to pricey SMS services. The app allows users to upload their contact book and message anyone who has the app installed at no cost. It is available for iPhones, Androids, Blackberries, Windows Phones, Nokia (NOK) phones and, most recently, desktops.

Learn 10 brilliant WhatsApp tips and tricks at TechRadar.