New Documents Reveal Elon Musk’s Plans To Store Money And Make Payments Through X

Is Elon Musk’s popular social media app X following in the footsteps of Venmo when it comes to financial transactions? Well, a new list of documents proves yes.

The paperwork delineated how the company isn’t looking for a huge stash of money in return for these payment services. Instead, it’s seeing it as a great chance for better participation as well as user engagement on the app.

It wouldn’t be wrong to add how the company’s financial situation has not bee at its best lately. We’ve seen X fight a host of financial challenges ever since Elon Musk chose to take over the company in late 2022.

During the first part of 2023, X was able to roll out a massive revenue of $1.48 billion which was nearly a 40% downfall from the same time last year. So in other words, the arrival of Musk brought the downfall of Twitter to a massive $456 million loss during Q1 of 2023 alone.

The company faced a huge number of setbacks and Elon Musk continued to lead the majority of share ownership for X Corp with a whopping 75% stake.

The data arises from nearly 350 pages of documents as well as emails linked to money transmitter licenses that were filed in more than 11 different states.

Today, the company’s own subsidiary called X Payments has managed to secure a whopping money transmitter license through 28 different states and these would be licensed across the country. That’s not all! Musk says more plans are in the pipeline for payment services throughout America this year.

At the start, X had a clear intention to roll out a host of international features for payments by the start of this year but thanks to regulators, the delays are plenty.

The firm says it has already informed regulators how it plans to pursue more money transfer apps after getting approval from various American states.

While Musk has yet to delineate further on this front, these documents are clear evidence of how X would like to give rise to a new digital dashboard through its webpage and mobile platform for payment management. This entails the sending and receiving of funds, storing money, and seeing the transaction history.

While the fee is small for carrying out transactions, X has added that its main goal right now is to increase user engagement. So many experts feel it’s not going to be easy as many new payment providers aren’t doing great in terms of attracting the masses who are relying on more established businesses like PayPal or Zelle as their trustworthy source.

Getting users to switch is not going to be easy when you enter a market featuring plenty of strong archrivals. But despite all of this, Musk has opted to accept the challenge and is already in collaboration with providers like Stripe to enable transactions done via debit and credit cards. Similarly, deals with Citibank are also on the rise.

For a while now, Elon Musk has also shown great interest in the world of crypto that’s proven by the firm’s holdings with Bitcoin. But right now, no plans are present to showcase support for such virtual currency dealings.

The strategy being employed by Musk on this front for X’s transformation into an app that offers everything means saying hello to a new payments network, working side by side with the company’s core service which is social networking.

Not a lot of details are being revealed at the moment but new documents on this front given to state regulators give insights into plans as reported by Bloomberg. From what we do know so far, the app’s proposal includes features resembling Venmo and giving users the chance to store money and enable payments to clients while also allowing buying products from physical stores.

Are we surprised? No, because Musk has been very clear from day one about how he wishes to diversify his X app and the revenue streams involved on this front that go above and beyond the world of ads. This is usually credited for more than 90% of the company’s income.

This is just the start as he also hopes to make X one of the world’s bigger financial entities but right now, it’s one step at a time.

Image: DIW-Aigen

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