Elon Musk has made no secret of his desire to turn Twitter into a “superapp”, including financial services. His transformation has now begun, and we have just learned that he has registered as a financial services provider in three US states. What’s next for the social network
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Twitter begins its transformation towards financial services
The exit of Threads, Meta’s equivalent of Twitter, is a signal. Twitter is weakened, and competitors with big teeth want to take its place. Under the leadership of Elon Musk, the social network has been transformed: it aims to become a superapp, offering a wide range of services to its users, including financial services.
Financial applications are not regulated like social networks, and Twitter will have to register with several institutions. And we’ve just learned that this has now been done in three US states:
NEWS: Twitter has finally secured its first money transmitter licenses in several US states. pic.twitter.com/gziiRgelYU
– T(w)itter Daily News (@TitterDaily) July 5, 2023
Michigan, New Hampshire and Missouri have all approved Twitter’s licence application. This is a significant first step for the company. The company is targeting the end of the year to start offering its financial services, but it still has some way to go to convince the other states.
The return of X.com?
As a reminder, Elon Musk was involved in the beginnings of PayPal, and began his career in the Fintech world with his company X.com. Twitter’s slow transformation into a financial institution is therefore a return to its roots for the billionaire. For the moment, the CEO of the social network is being vague about the specifics of this new version of Twitter. Initially, Twitter is expected to offer fiat services similar to those offered by Venmo and PayPal.
Next, Twitter could integrate cryptocurrencies: sources close to the social network confirm that the door has been left open, but that this is not the company’s priority. As for “Twitter Coins”, which are arousing the curiosity of observers, they seem to be heading towards an internal reward system, along the lines of what is done on Reddit, rather than towards real assets.
Twitter’s transformation is seen as crucial if it is to survive in the face of competitors determined to come and compete with Elon Musk on his own turf. Will the billionaire’s gamble pay off? Find out in the coming months
