Twitter, now rebranded as “X,” is set to unveil a new payment system called “X Payments” later this year. Despite Elon Musk’s known affinity for cryptocurrencies, the platform will not initially support digital assets, opting instead to rival traditional payment apps like Venmo and Cash App.
Unveiling the X Payments System
According to a Bloomberg report, the details of the X Payments system were contained in a 350-page document and financial license emails submitted to regulators in 11 states. The proposed system will offer features like fund storage, transfer, and payment for goods and services, competing directly with popular payment apps.
“However, Twitter Payments does not anticipate charging fees for all of its Services, as the overall goal of the Services is to help increase participation and engagement on the X Platform.”
The company has received money transfer approval in 28 states and is aiming for a full operational license in all 50 states, a process it acknowledges will take several years. Additionally, X Payments plans to secure permission for cross-border money transfers.
Musk’s Vision for an “Everything App”
Elon Musk, the CEO of Tesla and the new owner of X (formerly Twitter), has been exploring various monetization avenues to transform the social media platform into an “everything app.” This vision is inspired by the success of China’s “super app” WeChat, which offers its over 1.3 billion users a mix of social media, messaging, and payment services.
“When I say payments, I actually mean someone’s entire financial life. If it involves money, it’ll be on our platform. Money or securities or whatever. So it’s not just, like, send $20 to my friend. I’m talking about, like, you won’t need a bank account.”
Despite the lack of initial cryptocurrency integration, Musk’s ambitious plans for X Payments suggest a future where the platform aims to become a one-stop-shop for all financial services, potentially including digital assets at a later stage.
Regulatory Hurdles and Challenges Ahead
The launch of X Payments is not without its challenges. The company has had to navigate the complex regulatory landscape, securing money transfer approval in 28 states so far. Achieving a full operational license in all 50 states is a multiyear process, and securing permission for cross-border money transfers adds another layer of complexity.
As X (Twitter) continues its evolution, the crypto community and the broader financial industry will closely watch the integration of payment services and the potential inclusion of cryptocurrencies.
