According to Financial Times, which refers to people familiar with the company’s plans, Musk wants Twitter users to be able to buy things on Twitter as well as peer-to-peer transactions, meaning that taking it a payments platform beyond just a social media platform.
The company has already been applying for the necessary licenses in the U.S. and intends to finish the U.S. license process within a year, at which point it will probably try to obtain the required governmental approvals for worldwide expansion, per the report.
“Musk has said he wants Twitter to offer fintech services such as peer-to-peer transactions, savings accounts and debit cards, as part of a master plan to launch an “everything app” that incorporates messaging, payments and commerce. In 1999, Musk co-founded X.com, one of the first online banks, which later became part of payments giant PayPal.”
During a meeting with Twitter advertisers held at Twitter Spaces in November, Musk had previously provided specifics about his intentions to enter the payments sector. He predicted that Twitter users will be able to send money to one another. Since then, no more information regarding this strategy has been made public, although Twitter is still actively developing it.
Becoming a payments platform is part of Musk’s effort to boost Twitter’s revenue. More than 500 advertisers have quit using the social media site since he gained control of Twitter last year. In the payments industry, the business will face off against formidable rivals like PayPal and Apple Pay. The infrastructure of the new service has been under the direction of Esther Crawford, director of product management at Twitter, per the report.
Despite Musk’s fondness of cryptocurrencies, Financial Times reports that the system will primarily be based on fiat payments, crypto capabilities are planned to be added in the future.