X, formerly known as Twitter, has obtained a money transmitter license in Washington DC, legally permitting it to operate as a payment service provider as it strives to become an “everything app.”
This latest development increases the jurisdictions in which X is legally permitted to operate payment services to 31 states and the District of Columbia.
This expansion into financial services is a critical step in Elon Musk’s vision for the platform. It indicates a potential change in how users interact with X, combining digital financial transactions with social networking.
The transition is a component of a more comprehensive strategy to elevate X from a basic social media platform to a multifunctional service provider.
X’s Becoming an “Everything App”
X, the social media platform previously known as Twitter, has made another substantial stride toward becoming an “everything app” under the leadership of Elon Musk.
The corporation has now obtained a money transmitter license in Washington DC, bringing its total to 31 states and the District of Columbia.
Musk’s vision to transform X into a multifunctional platform that can manage financial transactions akin to PayPal or Apple Pay aligns with this most recent development. X’s ability to provide payment services throughout the United States is contingent upon acquiring these licenses.
The platform has undergone substantial changes since Musk’s $44 billion acquisition of Twitter in April 2022, including its rebranding to X.
Musk has ambitious plans to broaden the platform’s capabilities beyond social media, which is why the drive for money-transmitter licenses is aligned.
The most recent documents concerning these licenses have disclosed plans for payment features on X that are similar to Venmo. The organization aims to increase user engagement and participation by charging minimal fees for its payment services.
Merchant fees and banking services, such as checking accounts, are the primary sources of revenue that X intends to generate.
X could conduct full-scale payment operations throughout the country if it can procure licenses in all 50 states. This can transform how users interact with and utilize the platform, transitioning it from its origins as a microblogging site to a more versatile digital service provider.
