Elon Musk's X Payment Plans
After acquiring Twitter and rebranding it as X, Elon Musk aimed to transform the social media platform into an “everything app” with a payment system. Here’s a summary of the current state of X’s payment efforts:
Progress: X has been making progress on its payment system, with a “Payments” button and new payment features reportedly appearing for some users. The company has secured a money transmitter license in 33 US states.
Features: The payment system is expected to include features such as peer-to-peer payments, user money storage, and high-yield accounts, as envisioned by Musk.
Timeline: Musk initially aimed to launch payment services by mid-2024, which aligns with the company’s recent progress in obtaining necessary licenses.
Challenges: X faces challenges in monetizing through advertising, making the payment service an attempt at an alternative source of revenue.
Legal Action: The company has filed an antitrust lawsuit against advertising groups over an alleged advertiser boycott, which has resulted in significant financial losses for X.
Recent Developments:
In August 2024, app researcher Nima Owji discovered references for new payment features, such as “transactions, balance, and transfer,” on X.
X Payments, a wholly owned subsidiary of X, was granted a license in North Dakota, bringing the total number of states to 33.
Impact: The launch of X’s payment service could potentially disrupt the digital payments landscape and provide an alternative to traditional payment providers. However, the success of this endeavor will depend on various factors, including user adoption, regulatory approvals, and competition from established players.