Templates exist because WhatsApp does not let businesses freely send unsolicited messages. Any business-initiated message, and any reply sent after the 24-hour customer service window has closed, must use an approved template.
A template has a fixed structure with optional variables (like a name or an order number) and is reviewed by Meta for content and category. Templates fall into categories such as marketing, utility, and authentication.
Once approved, a template can be sent to opted-in customers. The template category determines how the resulting conversation is priced and what content rules apply.