X Has Secured Money Transmitter Licenses For Payments in 31 U.S States

In a significant move towards expanding its financial services, X (formerly Twitter) has obtained money transmitter licenses for payments in yet another U.S. region, within the District of Columbia. This latest license brings the total number of jurisdictions where X can legally operate to 31 states across the U.S.

These states include; New Hampshire, South Carolina, North Carolina, South Dakota, Rhode Island, Pennsylvania, West Virginia, Connecticut, New Mexico, Mississippi, Tennessee, Louisiana, Maryland, Nebraska, Kentucky, Wyoming, Arkansas, Colorado, Michigan, Missouri, Georgia, Nevada, Arizona, Virginia, Kansas, Oregon, Florida, Illinois, Utah, Iowa, and Ohio.

The acquisition of payment licenses marks a pivotal step in X’s broader ambition to integrate financial services into the social media platform, thereby providing users with seamless payment solutions. This aligns with Musk’s vision to transform X into an “everything app”, capable of also handling financial transactions similar to PayPal or Apple Pay.

Since Musk’s $44 billion acquisition of Twitter in October 2022, the platform has undergone significant changes, including its rebranding to X. The push for money transmitter licenses aligns with Musk’s ambitious plans to expand the platform’s capabilities beyond social media.

Recent documents related to these licenses revealed that X plans to integrate a Venmo-like feature that will allow users to store money on their X accounts, pay or transfer money to other users or businesses, and buy products and services in physical stores. Musk earlier said the payments feature is anticipated to go live in mid-2024, but details on the launch date are still not clear.

The company intends to charge minimal fees for its payment services, aiming to boost user engagement and participation. Also, it plans to generate revenue primarily through merchant fees and banking services, including checking accounts.

According to reports, Musk had initially hoped to launch payments on X globally by the end of this year, but he had since had to scale that ambition back to U.S only payments, due to initial pushback from U.S. state authorities.

While X Payments has now secured money transmitter licenses in 31 states, this is the first stage of facilitating transactions in the app, and it still has to get full approval. After transmitter licensing, X will then proceed to secure payment processor approval in each state as well, which is required if the platform wants to facilitate direct shopping in-stream.

A major part of Elon Musk’s plan for expanding X into an “everything app” has been grafting a payments network onto its main social networking service. Musk has often said that X needs revenue other than advertising, which has historically made up more than 90% of sales. He also said that X could become the largest financial institution in the world.

The license documents reveale that X doesn’t plan to charge significant fees for its payment services, though, and the company has told regulators it sees offering payments as a way to boost its business through “increased participation and engagement” on the app.

By securing money transmitter licenses, X is demonstrating its commitment to regulatory compliance and the safety of its users’ financial transactions. This move is likely to strengthen user trust and position X as a formidable player in the evolving landscape of digital payments.

As X continues to innovate and expand its services, the integration of payment capabilities is expected to create a more versatile and user-friendly platform, catering to the diverse needs of its global user base.