X has secured a money transmitter license in yet another U.S. region, with the District of Columbia approving X’s application, taking it another step closer to its X Payments vision.
As reported by X News Daily, the District of Columbia adds to the growing list of approvals for X’s payments push. X needs to gain transmitter approvals in every U.S region, before it can move onto facilitating in-stream payments and money transfers, which is the first stage of Elon Musk’s broader plan to convert the app into a financial superpower on the web.
Musk is hoping to use his experience from the early days of PayPal to expand what people can do with their money online. Elon’s view is that while web payments are now generally accepted, that’s only a small part of the broader puzzle, with online financial tools also able to facilitate all existing functions of banking institutions.
It’s all just data, the same as any other type of web communicated info, and in Musk’s view, that should eventually open the door for X to provide banking, loans, basically every element of your financial life within the app.
And that, then, would make X the key backbone of your transactional process, solidifying it as a foundation for your day-to-day experience.
It’s an ambitious plan, which will require a lot to go right, but Musk’s hoping that X will eventually be able to cater to all of these demands, and then some, becoming an essential utility.
Though again, a lot has to go right for this to become reality.
According to reports, Musk had initially hoped to launch payments on X globally by the end of this year, but he’s since had to scale that ambition back to U.S. only payments, due to initial pushback from U.S. state authorities.
And while X Payments has now secured money transmitter licenses in 31 states, that’s only the first stage of facilitating transactions in the app, and it still has a way to go in getting full approval.
For example, after “transmitter” licensing, X will then also need to secure “payment processor” approval in each state as well, which is required if X wants to facilitate direct shopping in-stream. This is one of the various reasons why X has had to scale back its timeline for payments, because of the regulatory steps required, and the timeline for approval in each instance.
And this is only for the U.S., with the company set to face even more significant challenges in other nations.
Basically, transmitter approvals are another required step, but X still has a long way to go before it can take the leap, and offer new forms of payments in-app.
But that is coming, and it could make or break Elon’s longer term plans for the app.
Will enough X users be open to making payments in the app to make this a viable option? Will those users then also be willing to trust X with their whole banking process?
Musk’s dedicated fans will no doubt be on board, but whether that will be enough remains to be seen.