Twitter licenses crucial for Elon Musk's payment strategies, yet obstacles persist ahead
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In a bid to diversify its revenue streams, Twitter, now rebranded as X under Elon Musk's leadership, has embarked on an ambitious strategy to develop payment-related features. The planned "X Money Account," a digital wallet enabling real-time payments and transfers, has the potential to revolutionise the way users interact with the platform. However, the road ahead is fraught with challenges.
Daniel Webber, CEO and founder of X, acknowledges that securing Money Transmitter Licenses is crucial for the company's payments journey. Yet, stiff competition from other social media players looms large. Despite receiving licenses for payments in four states—Arizona, Michigan, Missouri, and New Hampshire—the process of securing a license across every state may take years and cost between $10m to $37m.
The initial payments-related projects, such as Twitter Subscriptions, have had very low uptake, with only around 35,000 users worldwide having one or more subscriptions. This trend is concerning, as X needs to significantly increase the number of users signing up to Twitter Blue if it is to reach the scale where a payments business can be viable.
The number of links to payment platforms on user profiles on Twitter dropped between 30 June and 10 July 2023, with the most severe decline coming from links for tipping platform Ko-fi. This decline could be a sign that the introduction of restrictions on tweet visibility and the launch of Instagram's Threads are harming the prospects for payments on Twitter.
Lucy Ingham, report lead author and Editor-in-Chief, states that millions of users are currently taking payments of various forms on Twitter, but X is taking a minimal cut. However, this could change with the X Money Account, which potentially adds credibility through its partnership with Visa.
Despite the challenges, there are still significant use cases for both domestic and cross-border payments on Twitter. At current rates, X is unlikely to yield more than $45,000 a month from Twitter Subscriptions when it starts taking a cut in 2024. Nevertheless, the appetite for payments on Twitter remains high as the company receives its first US licenses.
However, X's payment plans are not without their internal and external challenges. Leadership instability, financial pressure, user adoption hurdles, and regulatory complexities threaten to derail the ambitious strategy. The abrupt resignation of CEO Linda Yaccarino in July 2025, who had been brought in partly to stabilize and grow the company’s advertising business and overall operations, raises uncertainties about the strategic direction and execution capabilities for new product lines like payment services.
Furthermore, despite launching several new product features including monetization options for users, X remains far from offsetting revenue losses in its traditional advertising business, increasing the pressure on payment solutions to contribute meaningfully to overall financial health.
Regulatory and compliance concerns also loom large. While not specified directly for X’s payment plans in recent updates, the broader environment around crypto and digital assets remains strictly regulated. Navigating future expansions may require careful regulatory adherence.
Lastly, Twitter’s ongoing controversies related to content moderation, misinformation, and reputational issues could affect user trust, which is crucial for financial services adoption. According to Daniel Webber, for Twitter to reach the scale needed for its payment plans to materialize, it will need to significantly increase its paid user base worldwide, requiring it to win over current users and attract new ones.
Ingham also notes that Elon Musk's policies over the past eight months have significantly harmed user trust, which could be detrimental to any serious payments initiative unless resolved. In summary, Twitter/X’s payment plans under Musk show promise through innovative service integration and strategic partnerships but confront significant internal leadership instability, financial pressure, user adoption hurdles, and regulatory complexities that will shape their ultimate success.
- Exploring investment opportunities in the tech sector, Daniel Webber, CEO of X, recognizes that expanding into the realm of finance through the establishment of a payment platform, such as the X Money Account, could potentially leverage social-media users' interest in entertainment and technology, thereby enhancing X's overall financial health.
- As X forges partnerships with established financial entities like Visa, the integration of investing functionalities within the platform could become a distinctive feature, attracting users and strengthening its position in the competitive landscape of social-media-based finance and entertainment.
