- X (formerly Twitter) plans to launch a Venmo-like payments feature that will allow users to store money, pay others, and make purchases from businesses.
- The documents submitted by X to state regulators reveal that the company does not intend to charge significant fees for its payment services.
- X sees offering payments as a way to boost user engagement and participation on the app, reducing its reliance on advertising revenue.
X is looking to expand into payments by building a Venmo-like service into its social networking app. Recently released regulatory filings provide new details about this initiative, including X’s goals, product plans, and the business challenges that led it here.
Payments Part of Broader Growth Strategy
X sees payments as a way to boost engagement and revenue beyond advertising. CEO Elon Musk wants X to become the world’s largest financial institution. Adding payments could help X increase participation and activity in its app.
X Payments Product Aims to Be Fast, Free
The documents show X plans to let users store money, send payments to other users and businesses, and make purchases in stores. X’s service will not charge fees like Venmo does. The company hopes easy free payments lead more users to interact on X.
Payments Could Address X’s Financial Struggles
X has faced financial troubles recently, especially after Musk’s takeover. Its advertising business has declined. Moving into payments provides a potential new revenue stream based on transaction volume rather than ads.
Regulatory Filings Reveal Launch Details
X submitted license applications to state regulators that have not previously been made public. The filings suggest X is far along in developing its payments service. However, regulatory approval remains a hurdle X will need to clear.
Payments Part of X’s “Everything App” Vision
Musk wants X to become a super app like WeChat, with many services beyond social networking. Integrated payments help X execute on this vision. The regulatory documents reveal payments are central to X’s future.
