The notification mentions the 'key updates' of the policy, which includes, how WhatsApp processes user data, how businesses can use Facebook hosted services to store and manage their WhatsApp chats and how the company partners with Facebook to offer integrations across the Facebook Company Product.
On WhatsApp's website, to reveal the specific of how it processes user data, the company says, “when a user forwards media within a message, we store that media temporarily in encrypted form on our servers to aid in the more efficient delivery of additional forwards.” In the terms update, WhatsApp maintains. "We do not retain your messages in the ordinary course of providing our Services to you. Instead, your messages are stored on your device and not typically stored on our servers. Once your messages are delivered, they are deleted from our servers."
WhatsApp also says, "if any of your contacts aren’t yet using our Services, we’ll manage this information for you in a way that ensures those contacts cannot be identified by us”.
As of now, users have the choice to opt for 'Not now' when the in-app notification, however, the deadline to read and accept the terms is 8 February 2021. After that date, users will either have to accept the notification or stop using the app.