Key Points
- Elon Musk plans to transform X into a Venmo-like app but will not support crypto transactions.
- X Payments, a dedicated subsidiary, plans to offer payment services across all 50 US states.
Elon Musk, the billionaire CEO of Tesla and SpaceX, has plans to evolve X into a payment application similar to Venmo. This revelation is based on a 350-page document and emails obtained by Bloomberg. The goal is to enable users to store, send, and receive money through their X accounts and make payments for goods and services at physical stores. However, there are no plans to support crypto transactions.
Last year, during a call with X employees, Musk hinted at this transformation. He expressed his vision of X becoming a platform that encompasses the entirety of a user’s financial life. He stated that the platform would handle monetary matters and securities, eliminating the need for a bank account.
Musk’s Stance on Crypto
Despite Musk’s history of accepting Bitcoin payments for Tesla products and his support for Dogecoin, there is no intention to incorporate digital asset payments on the platform. The documents and emails acquired by Bloomberg confirm this.
X Payments and Regulatory Compliance
The proposed payment services will be provided through a dedicated subsidiary, X Payments. This subsidiary has applied to become a payment transmitter in all 50 US states, ensuring compliance with local regulations. According to the company’s website, X Payments has received regulatory approval from 28 states, including Wyoming, Rhode Island, Utah, and Louisiana. The company is prepared to wait for a multi-year process to acquire the necessary permits to service users across the United States.
Originally, Musk planned to launch the payment services globally in the first quarter of 2024. However, regulatory hurdles have delayed the release.
X’s Competitive Strategy
After obtaining sufficient permits in most US states, X Payments will continue to pursue international money transfers. The company plans to reapply to financial authorities when ready. The introduction of payment features on X is seen as a means to enhance its business offerings through “increased participation and engagement” on the app. To stay competitive with other payment platforms like Venmo and PayPal, X plans to charge relatively low transaction fees when it begins processing transactions for users.
