Elon Musk’s Twitter applies for US state licenses for payments business

Twitter has taken further steps towards allowing payments on its platform. The corporate is reportedly looking for regulatory licenses across america and is working on developing the mandatory software for the feature. 

The rollout of the platform’s upcoming payments system is reportedly being led by Twitter Director of Product Management Esther Crawford. She is reportedly working with a small team to develop the mandatory architecture that might enable payments on Twitter, in addition to a vault that might store and protect user data. The data was related by the Financial Times, citing two sources reportedly accustomed to Twitter’s plans.

Elon Musk has shared some ideas for fintech services on Twitter. These include peer-to-peer transactions and high-yield savings accounts, amongst others. The features are a part of a broader plan to create an all-in-one app that mixes messaging, payments, and commerce. Musk has referenced the creation of “X,” an “All the things App,” in previous posts on Twitter. The CEO has also praised China’s WeChat, an “every little thing app” that incorporates a suite of services.

While payments over the web appear to be a departure for Musk, who’s most well-known today for his work on electric vehicles and space travel with Tesla and SpaceX, the web payments industry is definitely familiar ground for the Twitter CEO. Musk has a background in finance, having co-founded X.com in 1999. X.com is an early online bank that might later grow to be a part of PayPal, one of the vital outstanding players within the payments industry today.

Twitter’s foray into the payments industry appears to have been in development for a while now. Regulatory filings indicate that the corporate had registered with the US Treasury as a payments processor in November. Twitter has reportedly began the technique of obtaining mandatory state licenses for the web payments service as well. One among the FT’s sources noted that Twitter is looking to finish US licensing inside a 12 months. After this, Twitter would reportedly seek to expand its payments services to other countries. 

Elon Musk ponders “high-yield” savings feature for Twitter creators

FXC Intelligence, a payments market data group, has noted that many Twitter users are already sharing links to third-party payment options of their tweets or on their account profiles. The variety of users who engage on this practice is estimated to be within the a whole lot of hundreds. Lucy Ingham, the pinnacle of content at FXC Intelligence, stated that Twitter’s expansion into the payments industry is smart. 

“Twitter is already a platform on which payments occur, so it’s type of a no brainer,” Ingham said. Critics, nevertheless, have advised caution since Twitter would must compete within the US against other popular online payment systems comparable to Venmo, Money App, and Zelle, all of which have already established a notable user base within the country. 

The Teslarati team would appreciate hearing from you. If you’ve gotten any suggestions, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

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