X, the social media platform formerly known as Twitter, is making strides toward implementing its new payments system, edging closer to CEO Elon Musk’s vision of transforming the platform into an “everything app.”
Recent research by app analyst Nima Owji reveals that X is in the process of adding a “Payments” button to the navigation bar, located under the bookmarks tab. Owji discovered this update on August 5 and shared his findings with TechCrunch. According to his report, the platform is working on features related to “transactions, balance, and transfer.”
When Musk acquired Twitter, now rebranded as X, he outlined an ambitious plan for the platform. His vision includes enabling users to store money in their X accounts, send payments to other users, and potentially offer access to high-yield money market accounts. The addition of a payments feature aligns with Musk’s broader goal of creating an all-encompassing digital ecosystem.
The new discovery suggests that the launch of X’s payment service might be imminent, which corresponds with Musk’s previously stated goal of rolling out the feature by mid-2024. In December, during an interview on X Spaces with Ark Invest CEO Cathie Wood, Musk indicated that the service would be operational by this timeframe.
In addition to developing its payment features, X has been working on securing the necessary regulatory approvals to facilitate money transfers. Last week, X Payments, a wholly owned subsidiary of X, received a money transmitter license in North Dakota, bringing the total number of states where it is authorized to operate to 33. This follows recent approvals in Alabama, California, and the District of Columbia, among others. The company has also obtained licenses in states such as Illinois, Louisiana, Nebraska, New Mexico, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Utah, Virginia, and West Virginia.
The push towards a payments system comes as X faces challenges with its traditional revenue model, particularly in monetizing through advertising. The company has recently encountered significant financial setbacks due to an advertiser boycott. On Tuesday, X filed an antitrust lawsuit against several advertising groups, claiming that their actions have resulted in substantial revenue losses for the company.
As X continues to navigate these hurdles, the introduction of a payments service represents a strategic move to diversify its revenue streams and solidify its position as a multifaceted digital platform. The development of these new financial features could potentially offer X an additional source of income while aligning with Musk’s long-term vision for the app.
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