Twitter has reportedly secured money-transmitting licenses in three states, the latest step in owner Elon Musk’s ambitious goal to turn the social media site into an “everything app.”
The company now has licenses to receive and transfer funds in Michigan, Missouri, and New Hampshire, Fortune reports. In order to become a nationwide payments processor, the company would need such licenses from each state.
Twitter is hoping a payments business can help it generate some much-needed revenue.
Elon Musk— (REUTERS)
Company executives reportedly said in a May pitch deck the new sector could generate as much as $1.3bn for Twitter by 2028.
It’s an infusion of cash that couldn’t come soon enough.
Twitter’s value has dropped by almost two-thirds since Mr Musk acquired the company in October.
When Mr Musk bought the company, he said buying Twitter was “an accelerant” for the creation of X, an “everything app” where people access all their vital online services. Twitter, Mr Musk said, would form the global “digital town square” at the heart of the everything app.
Such apps already exist in Asia, such as the wildly popular Chinese service WeChat, where users can share posts, get news, make mobile payments, book restaurants, and order taxis.
In April, Mr Musk merged Twitter with his X Holdings Corp, which he said will be the eventual holding company of his various businesses including Neuralink, SpaceX, Tesla, and the Boring Company.
Some observers doubted whether Mr Musk would be able to follow through on his ambitious plans for X.
“Super apps, as they are known in the industry, are not a new thing. They’ve been hugely successful in Asia, but have not really caught on elsewhere,” social media expert and industry commentator Matt Navarra told the PA news agency when Mr Musk bought Twitter. “Could Twitter form part of a super app that lets you buy goods, chat to friends, get news updates, book a taxi etc? Sure. Can Elon Musk make it work? Possibly. Will Elon actually do it? Who knows. He seems to have commitment issues.”
