Elon Musk’s X project, despite current challenges, is advancing toward its vision of becoming an “everything app.” A recent finding in the app’s backend code suggests that the payment system, a crucial part of this vision, is nearing its rollout.
This aligns with Musk’s long-term goal of creating a platform for all financial transactions, a concept initially developed with David Sacks in 2000 for what would eventually become PayPal. Although their original idea was not fully realized back then, Musk is now striving to implement it through X.
Musk envisions X offering more than just payments; he aims to include high-yield accounts, debit cards, check and loan services, and more. The goal is to revolutionize financial transactions by providing low-cost or fee-free, instantaneous transactions, with in-stream payments being the first step. While UI elements indicate progress, X still has several hurdles to clear before these services become a reality.
Currently, X has secured money transmitter licenses in 31 U.S. states, but it needs approval in 20 more to fully launch its payment services. Despite the slow and ongoing approval process, there has been significant progress since January, when X had only 15 approvals. Achieving full approval by the end of the year could enable X to offer in-stream payments to U.S. users, marking a major milestone.
However, obtaining the necessary licenses is just one part of the equation. X also needs payment processor licensing to facilitate direct in-stream shopping. This licensing is essential for operations in each region where X intends to offer its payment services. The process has taken longer than Musk anticipated, potentially delaying his plans to have payments operational by the end of 2024.
The success of X payments will depend not only on regulatory approvals but also on user trust and adoption. While Musk believes fee-free transactions could attract users, there is skepticism about whether people will trust the platform with their money, especially given existing, reliable options.
Furthermore, expanding into international markets poses additional challenges due to Musk’s often critical stance on foreign governments, which may affect their receptiveness to X’s financial services. Thus, while progress is evident, significant challenges remain for X to achieve Musk’s ambitious goals.