Elon Musk, who is known for leading companies such as Tesla and SpaceX, is reportedly making progress with his plans to introduce a payment feature on Twitter. The plans, according to sources cited by Financial Times, are aimed at creating a new revenue stream for the social media giant.
The payment feature, initially, will support traditional currencies like the US dollar, but it has been designed with the capability to incorporate cryptocurrencies in the future, should the opportunity present itself.
With this move, Twitter hopes to tap into the growing digital payments market and stay competitive with other social media platforms.
Elon Musk says Twitter payment is going to use Fiat, but crypto (dogecoin) functionality can be implemented in the future.— Sir Doge of the Coin ⚔️ (@dogeofficialceo) January 30, 2023
However, it is unclear whether the aforementioned payments will make use of blockchain or crypto technology.
Twitter has long hinted at bringing payments to the social media platform—as part of Elon Musk’s plan to launch an “everything app,” Elon Musk wants Twitter to include not only messaging, payments, and commerce, but also fintech services such as peer-to-peer transactions, savings accounts, and debit cards.
In Dec, leaked images showed “Twitter Coins,” a yet-to-be-released digital asset for payments and tips on the platform.
There was speculation it would incorporate crypto, but recently leaked images from Jan made no mention of crypto or blockchain tech. Last Oct, unverified reports claimed Twitter was developing a wallet prototype with crypto support, but it seems the payment system will only have fiat support at this time.
Twitter has reportedly started the process of obtaining regulatory licenses in the US and developing the necessary software to implement payments on its platform. The aim is to find new revenue sources and improve the business, according to sources. The company hopes to complete the US licensing process within a year.
In November, “Twitter Payments LLC” was registered with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which will enable it to process payments.
Elon Musk stated during a Twitter Space event that he envisions allowing bank accounts to be linked to Twitter profiles, adding debit cards, and enabling money transfers. If the US licenses are approved, Twitter plans to seek regulatory approval internationally, according to sources.