X, the social media platform founded by Elon Musk, has obtained a money transmitter license from Utah, the 15th U.S. state to grant approval as the company explores offering payment features.
The license, which became effective on January 12, 2024, allows X to facilitate funds transfers between users, as well as to provide other related services. X has been collecting money transmitter licenses from various states since last year, with a vision to launch peer-to-peer payments in the app.
A money transmitter license is a prerequisite for enabling digital payments, but not sufficient for allowing direct shopping within the platform. For that, X would need to obtain a payment processor license, which is a more complex and rigorous process.
X's payment ambitions are part of Musk's broader plan to transform X into an "everything app" that would not only enable free speech, but also empower users to do much more, such as banking, shopping, and investing. Musk has previously stated that he expects X to be granted money transmitter approval from all U.S. states within "the next few months", and to roll out payments by the end of 2024.
However, X still faces many challenges and uncertainties in its quest to become a global payment platform. Besides the regulatory hurdles, X also has to compete with other established players in the field, such as Meta, PayPal, and Stripe. Moreover, X has to deal with the technical and security issues that come with handling sensitive financial data and transactions.
One of the key questions that many users and observers have is whether X will support cryptocurrencies as part of its payment features. Musk, who is a vocal advocate of Bitcoin and other digital assets, has hinted at the possibility of integrating crypto payments into X, but has not confirmed any specific plans or timelines.
X has a large and loyal user base, especially among the crypto community, who see the platform as a bastion of free speech and innovation. If X can successfully launch its payment features, and potentially include crypto support, it could become a major force in the digital economy, and challenge the dominance of other tech giants.
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 Gets Green Light for Payment Services in Utah #XPayments){kind=link}