Social media giant X, formerly known as Twitter, has announced plans to introduce a peer-to-peer payment feature later this year, according to a blog post published on Tuesday. The move is part of X's broader strategy to enhance user utility and explore new opportunities for commerce within its platform.
Elon Musk, the owner of X, revealed the company's payment plans in a conversation with Ark Invest CEO Cathie Wood on December 21, 2023. Musk, known for his involvement in companies like Tesla and X, mentioned that the San Francisco-based company was awaiting state approvals to launch its payment feature.
During the discussion, Musk expressed optimism about the timeline for the rollout, stating, "I would be surprised if it takes longer than the middle of [2024] to roll out payments." He also noted that X had already obtained licenses in the majority of U.S. states. However, Musk
highlighted that the crucial approvals from California and New York were yet to be secured.
X's official website currently lists 15 state licenses, with the 15th license from the state of Florida. Musk emphasized the significance of obtaining approvals from states like California and New York for the implementation of the payments feature.
While Musk asserted that he was not aware of any obstacles to launching the payment service, it was revealed that state approvals faced a delay of nearly 90 days last year. A letter from the New York City law firm Walden Macht & Haran alleged that X was "unfit" to hold money transmitter licenses, prompting regulatory scrutiny.
Addressing the delays, Musk acknowledged a "chaotic" start at X, explaining that the company had not submitted required documents until the middle of the previous year. He described the initial phase as challenging, admitting, "Things were obviously quite chaotic, especially for the first few months."
Elon Musk, one of the wealthiest billionaires globally, co-founded X.com, an online bank that later merged with PayPal, a major player in the payments industry based in San Jose, California.
As X ventures into the realm of peer-to-peer payments, the company aims to position itself as a comprehensive platform where users can seamlessly conduct transactions and engage in various aspects of their digital lives. The upcoming payment feature aligns with X's strategy to offer users a multifaceted experience within its ecosystem.
The formal launch of X's peer-to-peer payment feature is anticipated to bring added convenience and functionality to users, further solidifying the platform's position as a versatile social and commercial hub.
