Elon Musk’s latest venture, X, has ventured into the financial realm with the launch of a groundbreaking payments account, marking a significant move in the multifaceted landscape of Musk’s business endeavors. This strategic step comes as X secures money transmitter licenses across several U.S. states, underscoring Musk’s vision of positioning X as a global financial hub, a goal accentuated by the notable $44 billion acquisition in 2022.

This foray into finance aligns with the anticipated trajectory of X under Musk’s leadership, despite ongoing speculation about the potential incorporation of digital assets. Musk clarified that the primary focus will be on fiat transactions, yet crypto analysts and enthusiasts continue to ponder the role of digital currencies in X’s future plans.

Beyond acquiring money-transmitter licenses, X has received approvals in states like Utah, emphasizing its commitment to establishing a robust financial framework. The collaboration with eToro, a trading platform, adds to X’s financial capabilities, allowing users to trade cryptocurrencies and stocks directly within the app.

While some web3 features have been rolled back, such as NFT profile photos and blockchain-based digital collectibles, X has unveiled new initiatives, including peer-to-peer payments and the integration of artificial intelligence into its platform. Termed ‘The Everything app,’ this move aims to enhance user experience, offering increased utility and opening new avenues for commerce.

Musk’s prior experience in the peer-to-peer payment arena, dating back to his involvement in an online payment company founded in 1999, adds weight to X’s current endeavors. With PayPal’s current dominance in peer-to-peer payments, X’s entry into this space holds particular significance.

The global peer-to-peer payment market, currently valued at $2.21 trillion, is projected to reach $11.62 trillion by 2032, making X’s venture both ambitious and timely. The company envisions X not merely as an app but as a comprehensive platform that consolidates diverse experiences under one interface.

Since Musk’s acquisition, X has undergone transformative changes, from renaming the company to implementing various adjustments. The focus has shifted towards video-first citizen journalism, a potential monthly fee to combat bots, and the introduction of features like audio and video calling, along with the AI search assistant named Grok.

Looking ahead to 2024, X aims to enhance AI usage, introduce features exposing users to diverse content, and forge partnerships to boost advertising. However, challenges persist, exemplified by major advertisers like Apple, Coca-Cola, and Disney withdrawing following Musk’s controversial endorsements. Valued at approximately $19 billion, X has encountered a 15% user decline and a 60% drop in advertising revenue since Musk assumed control.

By Impact Lab