X eyes payments license in New York, California
X – erstwhile Twitter – continues to make headway towards Elon Musk’s dream of becoming an “everything app”. It is now readying up for a foray into the world of financial services. This time, the social media company is on the verge of obtaining approval for a money transmitter license in New York and California, according to owner Elon Musk.
Musk stated at the Morgan Stanley technology, media and telecom conference that X could receive its license in California “in the next month or so,” while obtaining approval in New York might take “a few months.” Gaining licenses in these populous states holds significant importance for the company, as they represent major user bases and are considered crucial milestones by experts for the nationwide expansion of X’s financial services. After all, these regions already boast large user bases and represent critical milestones for nationwide expansion.
So far, the social media company has secured a total of 15 money-transmitter licenses spanning across various states in the US – last month, it received the license from Utah. Some of the other states to give the green light include Hampshire, Pennsylvania, Arizona, Georgia, Maryland, and Michigan. Once X receives the licenses from all the 50 states in the US, the social media platform will give users the ability and support to make financial transactions across the country directly from the platform.
This development itself is not surprising – ever since he had acquired Twitter (now X) two years ago, Musk has envisioned transforming it into an “everything app” similar to China’s WeChat, offering functionalities beyond traditional social media. This includes, among other features, the ability for users to send and receive money directly within the X platform. The road will not be easy, and navigating regulatory landscape poses significant challenges, as each state may have distinct requirements and approval processes.
It remains to be seen whether the integration of financial services (like money transfers directly from the platform) serves as the answer to X’s numerous woes, especially after the social media company has found itself embroiled in numerous lawsuits and controversies under Musk’s regime. Fully integrated financial services into X’s platform could potentially attract new users and increase user engagement by offering a wider range of functionalities within a single platform. Additionally, offering financial services might open up new revenue streams for X, potentially through transaction fees or partnerships with financial institutions.
For X’s users, the potential integration of financial services could offer several benefits. The ability to send and receive money directly within the platform could provide convenience and streamline financial transactions. Additionally, X might explore integrating other financial features like bill payments or investment options, further enhancing user experience on the platform.
In similar news, the micro-blogging site is also exploring modifications to its user interface. Musk indicated that the platform is considering removing the visible counts of likes and reposts on each post. According to media reports, this change aims to streamline the user experience by reducing visual clutter and fostering more meaningful interactions among users.