Elon Musk is moving forward with plans to turn Twitter into a payment platform to compete with Apple Pay and PayPal, and the company has reportedly begun the licensing process in the US.
Payments could be another way Twitter generates revenue by enabling transactions between users.
However, obtaining regulatory approval is expected to be a lengthy process.
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The social media platform company hopes to complete the US licensing process within a year. After that, Twitter will likely try to get the regulatory approvals it needs to expand internationally.
According to the Financial Times report Citing people close to the company’s plans, Musk wants to let users buy things on Twitter and send money to each other.
According to the report, the system will be based on fiat currency, but cryptocurrency functionality could be added at a later stage.
Twitter is already working on a system where users can reward creators. These new features require the company to meet regulatory checks and, according to the Financial Times, the company is already registered with the US Treasury as a payment processor. In addition, the company has also begun filing for the required regulatory licenses in the United States.
Is Elon Musk cloning WeChat?
According to the New York Times reportMusk told Twitter investors that his goal is for Twitter to bring in about $1.3 billion in payments revenue by 2028.
His broader plans are for a more functional app that takes advantage of China’s WeChat utility, which Chinese people use for everything from ordering groceries to buying public transport tickets and paying bills. that is to be replicated.
The platform has become a key factor and has formed an important part of China’s Covid 19 response. Authorities have used the app as a means of managing and restricting movement of people who have tested positive for the pandemic.
Since buying the social media platform for $44 billion, Musk wanted to bring payments to Twitter even before he owned the company. A flurry of filings since his October acquisition show an impending plan to introduce embedded payments across the service.
Payment may be an olive branch
Since his acquisition, advertisers have left the platform over concerns about content moderation and related issues.
Advertising revenue was in the $5 billion range per year, but the platform was widely reported to have lost half of its advertising deals by November.
NPR I have written “Chevrolet, Chipotle Mexican Grill, Inc., Ford, Jeep, Kyndryl, Merck & Co., and Novartis AG have all issued or have been reported and confirmed to have issued statements regarding the suspension of Twitter Ads.” and added its name to a longer list of advertisers defectors.
Andrew Hutchinson, Content and Social Media Manager write The plan will give Twitter a much-needed boost in revenue, he said.
The company could hit breakeven this year or in earnings after Musk cut its staff by 70% as a result of cost-cutting measures. But Hutchinson says a lot has to be done right to get the platform off the ground.
“And it doesn’t look good as advertisers continue to spend less on Twitter. On the other hand, it’s unlikely that a subscription to Twitter Blue will save a lot of money, at least for now.” Hutchinson said.
“So the transition to payments won’t be fast enough, but it will still be some time before we see the potential for in-app payments,” Hutchinson added.
musk is fast platform A payment innovator who founded the online bank X.com in 1999 and through a series of events became the first version of PayPal in 2001.