Twitter has started seeking regulatory licenses in the US and is developing software to introduce payments on the platform. Twitter CEO Elon Musk has said the system will be first and foremost a fiat currency system, but it will include crypto functionality.
Allowing payments through the microblogging platform is reportedly a critical part of Elon Musk’s plan to open up fresh revenue streams for it. The platform’s $5 billion-a-year advertising business has cratered since Musk acquired the platform.
Musk has said he wants Twitter to offer fintech services such as peer-to-peer transactions, savings accounts, and debit cards. The features are a part of his plan to launch an “everything app” that combines messaging, payments, and commerce.
In a May pitch deck reported on by the Financial Times, Musk stated his goal of generating $1.3 billion in payments revenue for Twitter by 2028. The move into payments will see Twitter face significant regulatory oversight.
Companies involved in money transfers, currency exchange, or check cashing must report unusual activity to authorities. To monitor for fraud and suspicious transactions, user accounts must be tied to a user’s identity, said Lisa Ellis, a payments expert and senior equity analyst at research company MoffettNathanson.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/jan/31/