Elon Musk’s social media platform, X, formerly Twitter, has obtained a money-transmitter licence from the state of Utah, making Utah the 15th US state to grant approval for such a license.
The approval, granted on last Friday according to the Nationwide Multistate Licensing System & Registry, allows X to function similarly to payment platforms like PayPal’s Venmo, enabling the facilitation of money transfers between users.
X incorporating payment features into its platform is a move that could potentially diversify its revenue streams beyond digital advertising, especially with the problems the platform’s digital advertising revenue has encountered lately.
X’s digital advertising business faced challenges after Musk acquired the platform, with some major advertisers pausing their spending or leaving the platform due to controversial incidents. Last year, Musk faced backlash when he agreed with an X user promoting an antisemitic conspiracy theory. Musk’s subsequent profane comment about brands that suspended their ads further contributed to advertiser dissatisfaction.
Since Musk’s acquisition of Twitter in October 2022, he has expressed his vision of transforming the platform into an “everything app,” similar to the popular Chinese app WeChat. WeChat allows users not only to send messages but also to perform various tasks such as hailing a taxi and making payments to merchants.
Utah’s approval comes after X obtained its first state money-transmitter license in New Hampshire in June 2023. The platform has also received approval from other US states, including Pennsylvania, Arizona, Georgia, Maryland, and Michigan.
