South African, Elon Musk, is ready to take his X platform to his vision of the ‘Everything’ App, Like China’s Weibo
Bloomberg News reports that Elon Musk’s vision for transforming X (formerly Twitter) into an “everything app” includes integrating a comprehensive payments network. This ambitious plan, detailed in state regulatory filings, aims to offer Venmo-like features, allowing users to store money, make payments, and even buy goods and services in physical stores.
Musk, who co-founded PayPal, is no stranger to the payments industry. His goal is to diversify X’s revenue streams beyond advertising, which has historically accounted for over 90% of the company’s sales. Despite facing financial struggles—X generated $1.48 billion in revenue in the first half of 2023, down 40% from the previous year—the company remains committed to its payments strategy.
X Payments, a subsidiary of X, has already secured money transmitter licenses in 28 states and aims to be licensed nationwide by the end of the year. However, the company faces significant challenges, including building new services and convincing users to adopt them in a market already saturated with competitors like PayPal, Venmo, and Cash App.
Financial documents reveal that X does not plan to charge significant fees for its payment services initially, focusing instead on boosting user engagement. The company envisions a digital dashboard where users can manage their payments, store funds, and view transaction history.
Despite Musk’s enthusiasm for cryptocurrency, notably Bitcoin and Dogecoin, X Payments has no current plans to support virtual currencies. The company emphasizes its intent to enhance user participation and engagement through its payment services, potentially revitalizing its advertising business by creating a platform where users are more likely to make purchases.
As Musk continues to steer X towards becoming a financial powerhouse, the company must navigate regulatory hurdles and market competition to achieve its ambitious goals.