In a groundbreaking move, the social media giant formerly known as Twitter has recently received approval for payment services in Pennsylvania, marking a significant step towards Elon Musk‘s vision of transforming the platform into what he calls an “everything app.” This development allows users to conduct their entire financial lives within the app, paving the way for X to become a comprehensive financial hub.
According to Reuters, the approval granted to X enables the platform to facilitate money transfers, akin to other payment systems such as PayPal’s Venmo. Musk’s ambitious plan revolves around making X the go-to platform for all financial transactions, eliminating the need for traditional banking services.
TechCrunch reported earlier this year that X had secured licenses in several U.S. states, including South Dakota, Kansas, Wyoming, Iowa, Mississippi, Georgia, Maryland, Rhode Island, Arizona, Michigan, Missouri, and New Hampshire. While the company still needs approval in every state to offer payment services across the entire U.S., Musk has outlined plans to expand features for users with significant followings, providing a potential avenue for advertising revenue sharing.
After facing controversies and a mass exodus of advertisers due to the endorsement of hate speech, X has shifted its focus towards small businesses. Musk, in an all-hands call with employees in October 2023, emphasized the broader scope of X’s payment services, stating, “When I say payments, I actually mean someone’s entire financial life. If it involves money, it’ll be on our platform. Money or securities or whatever. So, it’s not just like sending $20 to my friend. I’m talking about, like, you won’t need a bank account.”
Musk further expressed his optimism, stating, “It would blow my mind if we don’t have that rolled out by the end of next year.” The move towards becoming a one-stop financial destination aligns with Musk’s overarching goal of creating a seamless and integrated experience for users.
As X continues to navigate the regulatory landscape and secure approvals across the United States, the prospect of a social media platform evolving into a comprehensive financial platform raises intriguing possibilities for the future of online interactions and financial transactions. If successful, Musk’s vision may redefine how users engage with their finances, challenging traditional banking models and paving the way for a new era of digital financial integration.