Although there are no specific details on what to expect from Twitter following the money transmitter licenses, insiders believe that Twitter Payments will start offering fiat currency services.
Elon Musk‘s vision to create new pathways for revenue is gradually coming to fruition as Twitter Payments LLC received its first set of money transmitter licenses in three US states. Reports revealed in January that the social networking service provider had started submitting applications for regulatory licenses in the US. People with knowledge of the matter revealed that Twitter’s Esther Crawford was working with a team on the requirements to facilitate payments on the platform. The company applied for licenses in all 50 states in the US and is looking forward to their responses.
Twitter Gets Money Transmitter Licenses from Three US States
After completing regulatory checks, Michigan, New Hampshire, and Missouri have issued money transmitter licenses to Twitter. The company can now offer transfer services or payment instruments, another profit stream. Missouri gave Twitter a sale of checks and money transmitter licenses, which typically provides consumer protection for businesses that process money transmission.
Since the billionaire took over the company in October, its advertising business, which was a major source of income, had declined. The $5 billion-a-year ad business got hit due to marketers’ concerns over management and content moderation. However, it appears Twitter is set for a fresh pipeline of profits. Elon Musk has been vocal about his visions, including his desire for Twitter to offer fintech services. The chief executive said he wants the social network company to offer fintech services like P2P transactions, debit cards, savings, accounts, and more. All his plans are towards his vision of an “everything app” combining payments, messaging, and commerce.
Although there are no specific details on what to expect from Twitter following the money transmitter licenses, insiders believe that Twitter Payments will start offering fiat currency services. The people familiar with the matter stated that the company may roll out similar operations with Venmo, Stripe, and PayPal (NASDAQ: PYPL).
Musk’s Visions for Twitter
Furthermore, Musk’s vision for Twitter goes beyond getting the money transmitter licenses. The company reportedly plans to expand the platform to accommodate crypto services. This does not come as a surprise as Musk is a known crypto fanatic, and his influence on a particular cryptocurrency has caused the asset to surge exponentially. In addition to the crypto service, another rumor is that Twitter Payments wants to launch a project dubbed “Twitter Coin”. More so, reports revealed that Twitter will unveil its own wallet.
Already, Musk had hinted that “Twitter would do lots of dumb things”, which is now evident in its successful push for money transmitter licenses in the US. The billionaire has made multiple changes within the company, including the most recent view limits on all users.