X, the platform formerly known as Twitter, has been going through a period of intense crisis under the leadership of Elon Musk. With content moderation becoming practically non existent and major advertisers like Disney departing en masse, it has started to seem like the platform’s days are numbers. In spite of the fact that this is the case, Elon Musk is adamant at transforming X from a social media platform into a so-called everything app.
With all of that having been said and now out of the way, it is important to note that processing payments is just one of the many things that Musk wants to do on that front. As one of the people first involved in PayPal, Musk has been involved in payment processing for quite some time now, and it turns out that X has just received a license to offer this service in a dozen states across the US.
The company is now able to legally transmit money in South Dakota, Wyoming and Kansas after receiving three additional licenses in November. This is on top of the nine other licenses it received for Iowa, Maryland, Michigan, Georgia, Mississippi, Rhode Island, Arizona, New Hampshire and Missouri. It will be interesting to see how this plays out because of the fact that this is the sort of thing that could potentially end up allowing Musk to create an alternate source of revenue that is independent of advertisers.
However, X as a platform simply won’t be able to survive if absolutely no one is placing ads on it. Hence, after big businesses took issue with the manner in which Musk conducted business and refused to take accountability for the rise in hate speech on the platform, the tech mogul has been targeting small to medium businesses instead with all things having been considered and taken into account.
He is doing this by introducing a new Basic tier for X advertising in order to make it more likely that smaller businesses would be willing to market on the platform than might have been the case otherwise. It bears mentioning that Twitter’s top 50 advertisers gave the platform over a billion dollars in annual revenue, and it will take a lot of small businesses to make up that gap. A basic ad tier might be the first step in that regard.
Read next: Elon Musk’s AI Startup Files With SEC To Raise Up To $1 Billion In Equity Offering
With all of that having been said and now out of the way, it is important to note that processing payments is just one of the many things that Musk wants to do on that front. As one of the people first involved in PayPal, Musk has been involved in payment processing for quite some time now, and it turns out that X has just received a license to offer this service in a dozen states across the US.
The company is now able to legally transmit money in South Dakota, Wyoming and Kansas after receiving three additional licenses in November. This is on top of the nine other licenses it received for Iowa, Maryland, Michigan, Georgia, Mississippi, Rhode Island, Arizona, New Hampshire and Missouri. It will be interesting to see how this plays out because of the fact that this is the sort of thing that could potentially end up allowing Musk to create an alternate source of revenue that is independent of advertisers.
However, X as a platform simply won’t be able to survive if absolutely no one is placing ads on it. Hence, after big businesses took issue with the manner in which Musk conducted business and refused to take accountability for the rise in hate speech on the platform, the tech mogul has been targeting small to medium businesses instead with all things having been considered and taken into account.
He is doing this by introducing a new Basic tier for X advertising in order to make it more likely that smaller businesses would be willing to market on the platform than might have been the case otherwise. It bears mentioning that Twitter’s top 50 advertisers gave the platform over a billion dollars in annual revenue, and it will take a lot of small businesses to make up that gap. A basic ad tier might be the first step in that regard.
NEWS: X to launch a Cheaper "Basic" Tier for Verified organizations.
— X News Daily (@xDaily) December 5, 2023
The Basic Tier will not come with
- 2x Boost
- Affliations
- Hiring. pic.twitter.com/ec8HcfNTPc
Read next: Elon Musk’s AI Startup Files With SEC To Raise Up To $1 Billion In Equity Offering
