Musk's X Receives Key License In US State As It Pushes For Payments Foray

Elon Musk's social media platform X (formerly known as Twitter) has secured a money-transmitter license from the state of Pennsylvania in the US. The approval was granted on Monday according to public records, marks the 13th US state to greenlight X's potential entry into the realm of facilitating money transfers.

Since Musk's acquisition of Twitter in October 2022, he has been vocal about transforming the platform into an all-encompassing "everything app." The billionaire tech moghul’s vision includes enabling users to conduct their entire financial transactions within the platform, akin to popular Chinese app WeChat, which seamlessly integrates messaging, ride-hailing, and payment functionalities.

Employees at X have reportedly been informed by Musk that new features aligning with this vision are expected to be rolled out by the end of the upcoming year. This strategic move into financial services positions X to allow users to send money to each other, a functionality comparable to payment platforms such as PayPal's Venmo.

While the push into payments offers a potential avenue for diversification beyond digital advertising, which has faced setbacks since Musk's acquisition of Twitter, the regulatory landscape poses challenges. X will need approval in every US state to offer payment services nationwide—a process anticipated to take up to 18 months and incurring substantial costs, estimated in the millions.

Several states, including Arizona, Georgia, Wyoming and Maryland, have already granted X money-transmitter licenses, paving the way for Musk's ambitious plans.