Twitter’s Transformation into Payment Platform: X Payments Unveiled, Crypto Integration Delayed
Elon Musk, the CEO of Tesla and now X (previously known as Twitter), has announced the upcoming launch of “X Payments,” a new payment system for the social media platform. Surprisingly, despite Musk’s well-known interest in cryptocurrencies, the initial release of X Payments will not support digital assets.
According to a recent Bloomberg report, this plan is outlined in a 350-page document and corresponding financial license emails that were submitted to regulators across 11 states. The aim of X Payments is to compete directly with popular payment apps like Venmo, Cash App, and Zelle. The system is set to offer features such as fund storage, transfer capabilities, and the ability to make payments for goods and services. While the company plans to charge small fees for certain transactions, they have also emphasized their ultimate goal of fostering increased engagement and participation on the X platform.
During a meeting with regulators in Maine earlier this year, X reiterated its intention to focus solely on a payment system and dismissed any immediate plans for launching a cryptocurrency wallet. It’s worth noting that Musk acquired Twitter, now known as X, for $44 billion in 2022 when the company was facing financial difficulties. Since then, he has been exploring monetization strategies to transform X into an all-encompassing app, inspired by the success of China’s “super app” WeChat, which combines social media, messaging, and payment services for its massive user base of over 1.3 billion people.
In an audio clip obtained by The Verge, Musk expanded on his vision for X Payments, stating that it would encompass every aspect of a user’s financial life, not merely limited to sending money to friends. He expressed a goal of eliminating the need for a traditional bank account, alluding to the platform’s potential integration of money, securities, and more.
X Payments has already obtained money transfer approval in 28 states, as stated on the company’s website. However, they have set their sights on obtaining a full operational license in all 50 states, acknowledging that this will be a multiyear process. Additionally, X Payments aims to secure permissions for facilitating cross-border money transfers.
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