Is Elon Musk’s X Payments the next big FinTech disruptor?

By Gloria Methri

Elon Musk is reigniting buzz around X Payments, a feature poised to revolutionise financial transactions on X (formerly Twitter).

On November 26, Musk shared a screenshot of Joe Rogan’s profile with a “$” icon, confirming the long-rumored in-app payment system. In response to user speculation, Musk cryptically replied, “True,” signalling the feature’s imminent arrival.

X Payments is part of Musk’s broader goal to transform X into an “everything app,” similar to China’s WeChat. This ambitious integration would enable users to not only send money but also manage their entire financial lives—from banking to securities trading—within a single platform. Musk has previously hinted that such functionality could eliminate the need for traditional bank accounts.

In October 2023, Musk reportedly told at an employee meeting it “would blow my mind if we don’t have that rolled out by the end of next year. …when I say payments, I actually mean someone’s entire financial life. If it involves money, it’ll be on our platform. Money or securities or whatever. So, it’s not just like ‘send $20 to my friend.’ I’m talking about – you won’t need a bank account.”

To realise this vision, X has already secured money transmitter licenses in 38 states, including California. However, obtaining a New York license remains a critical roadblock. Regulatory scrutiny and past lawsuits have complicated the process, though recent developments suggest progress. Musk’s team anticipates launching the payment system by late 2024.

The Crypto Angle

Unsurprisingly, Musk’s announcement has invigorated the crypto community. Dogecoin (DOGE), Musk’s favoured cryptocurrency, experienced a significant price surge following the news, rising from $0.39642 to $0.47218 within hours. Over the past month, DOGE’s value has skyrocketed by 227%, driven in part by Musk’s consistent advocacy for the meme coin.

Cryptocurrency integration within X Payments could add another layer of versatility, making the platform attractive to both mainstream users and crypto enthusiasts. The feature might leverage blockchain technology for transactions, enhancing speed and transparency.

If successful, X Payments could disrupt both industries. For social media, it means users can engage in financial transactions without leaving the app. For the financial sector, Musk’s plan represents a direct challenge to traditional banking systems and existing digital wallets.

Moreover, this development aligns with broader trends in FinTech, where companies are merging communication, commerce, and financial services to provide seamless user experiences. By integrating payments into X, Musk is positioning the platform as a pioneer in this convergence.

Despite the regulatory hurdles, the anticipation surrounding X Payments remains high. If Musk’s vision comes to fruition, it could redefine how users interact with money online, marking a major milestone in the fusion of social media and finance.