New X Payment Services Getting Ready to Launch

Elon Musk’s new X payment services are still making progress ahead of launch on the popular social media platform.

Elon Musk, a proponent of free expression, intends to incorporate a payment network into X, his social media networking service. However, there has been minimal communication regarding the project in the past few months. Nevertheless, the company continues to advocate for the relocation, as evidenced by certain documents submitted to state regulators. It is essential to mention that this is also a component of Musk’s strategy to transform X into an “everything app.”

X to Emerge as the Subsequent Venmo Platform

According to a Bloomberg report, the new information is sourced from documents and communications that X submitted to approximately eleven states to obtain a money transmitter license. Among them are organizational schematics, business plans, and financial statements.

Elon Musk is focusing on a payment feature similar to Venmo that will enable users to retain funds on their X account, as the over 350-page document indicates. This service allows X users to make payments for purchases in physical locations and pay other users or businesses.

For an extended period, the owner of X has consistently emphasized that the social media company requires a more significant amount of revenue than it does in advertising. It is important to note that the advertising division of X has generated over 90% in sales over the years. Musk is optimistic about X’s potential to become the world’s largest financial institution. Therefore, the company’s decision to advance its payment feature plans is unsurprising.

According to the documentation, X does not intend to impose substantial fees for its prospective payment service. On the one hand, the company disclosed to regulators its intention to leverage the payment feature to enhance its business by fostering “increased participation and engagement” on the X app.

As a result of Musk’s $44 billion acquisition, X’s revenue has declined

The documents provided state regulators with information regarding the company’s business challenges since 2022, when Elon Musk assumed control following a $44 billion bid.

To provide context, the social media platform generated $1.48 billion in revenue during the first half of 2023. This was a significant departure from the figures generated at the same time in the previous year, just before Musk’s acquisition of the company. X experienced a revenue loss of approximately $456 million in the first quarter of 2023.

The company’s wholly-owned subsidiary, X Payments, has obtained numerous money transmitter licenses from approximately 28 states, including one from the Louisiana state authority. This is noteworthy.

Nevertheless, its overarching objective is to obtain approval in all 50 United States states and introduce its financial services throughout the region by the conclusion of 2024. The X Payments system is designed to seamlessly incorporate various financial services into the app, allowing users to manage all of their transactions without needing a bank account.

Most of the emails sent to the state regulator indicate that X is prepared for the potential several years to obtain the permit necessary for nationwide operations. The company was recently compelled to postpone its plans to release the payment services internationally due to regulatory setbacks earlier this year.