Elon Musk’s ambitious vision for X as a Super App is steadily materialising.
Recent developments indicate that X is close to launching its own payment system, marking a significant step towards integrating financial services into the social media platform.
According to app researcher Nima Owji, X is working on incorporating a “Payments” button into the app’s navigation bar. This feature will facilitate transactions, balance checks, and money transfers directly within the app.
Regulatory Progress
Since Musk’s acquisition of Twitter, now X, his vision has included enabling users to store money, make payments, and potentially earn interest through high-yield money market accounts.
To realise this, X has been aggressively pursuing money transmitter licenses across the United States.
Recently, X Payments, a subsidiary of X, secured a license in North Dakota, bringing the total number of states where it can operate to 33, including major markets like California, Alabama, and the District of Columbia.
Strategic Timing and Market Impact
Musk aims to launch the payment service by mid-2024, aligning with his statements in a December interview with Ark Invest CEO Cathie Wood.
This timing coincides with X’s strategic push to diversify revenue streams beyond advertising, which has faced significant challenges.
Recently, X filed an antitrust lawsuit against advertising groups following an advertiser boycott that led to substantial financial losses.
The anticipated payment system is not just about facilitating transactions.
Musk envisions X evolving into a comprehensive financial platform where users can manage their entire financial lives.
This includes functionalities like sending and receiving money, storing funds, and tracking transaction history.
The company plans to charge small fees for certain transactions, aiming to increase platform engagement and participation.
Competitive Edge and Future Prospects
By integrating payments, Musk plans to create a super app that rivals financial services offered by traditional banks.
In an all-hands company call, Musk highlighted his goal to encompass all financial activities, eliminating the need for separate bank accounts.
This bold strategy aims to significantly enhance X’s value, with Musk predicting a tenfold increase from its current valuation as the platform becomes central to users’ financial interactions.
The foray into the payments sector represents a pivotal shift in its business model, aiming to transform from a social media platform to a comprehensive financial ecosystem.
By leveraging its vast user base and integrating advanced payment functionalities, X is poised to revolutionise how users manage money.
As the company continues to secure regulatory approvals and develop new features, the vision of X as an “everything app” is rapidly becoming a reality.
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