Key Points

  • Twitter has received licenses to operate as a money transmitter in Michigan, Missouri, and New Hampshire.
  • The advancement is the first step for XCorp to become a global financial services provider.

Twitter has secured licenses to operate as a money transmitter in Missouri, New Hampshire, and Michigan, setting the stone rolling for its dream of becoming a financial service provider. Elon Musk disclosed this plan when taking over the social media giant last year to set it apart from the growing competition.

Twitter’s dream to be a financial services provider lives on

The objective of Elon Musk’s blue bird to become a financial services provider lives on as the company secured three US states money transmitter licenses. The company now only has to secure 47 more licenses to cover the US.

This development comes as a win for Elon Musk as more competition grows among text-based social media companies’ niches. Yesterday, Mark Zuckerberg Meta launched Threads, a text-based social media app powered by Instagram and is a direct competitor to Twitter. Donald Trump also launched Truth Social, a text-based social media company, after getting banned on almost all social media platforms before Elon Musk’s Twitter takeover.

As such, Twitter has been in a tight spot to revitalize its activities and become more profitable. It is now turning to financial services provision to improve its business outreach. The newly acquired money transmitter license allows a company to provide transfer services or payment instruments in the area of jurisdiction. It, however, differs from the license to conduct sales services in that it’s there to ensure customer protection for businesses that transmit money from one party to another.

The company also intends to open up its financial services to cryptocurrency services. However, crude information has yet to be offered on how this will be achieved or the capacity the company will serve its users with. It has also been rumored that the company is set to launch its Twitter coin cryptocurrency.

However, all these remain to be seen after the company confirms how Twitter Pay will function. Keep watching Fintech Express for more updates on this and other fintech-related developments.