Key findings reveal that Twitter license acquisitions are essential for Elon Musk's financial strategies, yet complications persist down the line
Twitter, now rebranded as X, is aiming to boost its paid user base worldwide by introducing payment features, such as the "X Money Account." However, the platform faces significant hurdles in regaining user trust and overcoming a troubled reputation, particularly in the realms of content moderation and advertiser boycotts.
The current challenges for Twitter's payment plans are deeply rooted in the loss of user trust and the platform's questionable reputation. Over the past few years, X has experienced a substantial decline in advertising revenue due to widespread advertiser withdrawals, triggered by rising hate speech, misinformation, and poor content moderation [2]. These issues have severely damaged the platform’s image and user trust, which may hinder user adoption and confidence in new financial features like the "X Money Account."
The "X Money Account," launched in 2025 in partnership with Visa, offers real-time payments and traditional bank transfers. However, aggressive monetization moves like limiting API access and functionality, restrictions on unverified users’ activity, and a degraded user experience may further alienate some developers and users, potentially impacting ecosystem engagement [1].
Despite the challenges, there are opportunities for X to leverage its platform for social-integrated payment services and expand internationally. The introduction of the "X Money Account" represents a strategic expansion into fintech services, enhancing international growth potential. By enabling real-time social payments within a global platform, X can tap into the growing demand for integrated social-commerce and financial tools [1]. Partnering with established financial entities like Visa may improve the credibility and regulatory compliance of these payment plans, offsetting some trust issues [1].
X's large global user base remains a foundation to build upon for expanding financial services internationally, especially if it can restore some user trust and stabilize the platform's social environment. However, securing all necessary licenses, such as Money Transmitter Licenses, will cost the platform between $10m to $37m [1]. X has already received its first US payments licenses, allowing users to make P2P and other payments on the platform [1].
The success of X's payment plans will depend on how effectively the platform addresses its trust deficit while scaling and regulating its payment ecosystem. At current rates, X is unlikely to yield more than $45,000 a month from Twitter Subscriptions when it starts taking a cut in 2024 [1]. To reach the scale necessary for its payment plans to materialize, X needs to significantly increase its paid user base worldwide [1].
Despite the challenges, X has millions of users currently taking payments of one form or another via the platform [1]. Twitter Blue customers may represent a potential customer base for X's payment services. However, the platform faces stiff competition from other social media players in the payments space, and the launch of Instagram's rival Threads may be harming Twitter's prospects for payments [1].
In conclusion, Twitter's payment plans face significant trust and reputational challenges due to content issues and advertiser boycotts, which may suppress user engagement with new financial tools. However, the opportunity lies in leveraging its platform for social-integrated payment services, partnering with fintech leaders, and expanding internationally to diversify revenue streams beyond advertising [1][2]. The success of these plans will depend on how effectively Twitter addresses its trust deficit while scaling and regulating its payment ecosystem.
References: 1. [Article 1] 2. [Article 2]
Technology advancements have opened up new avenues for Twitter (now X) to diversify its revenue streams, especially in the realm of fintech services. The introduction of the "X Money Account," a partnership with Visa offering real-time payments and bank transfers, marks X's strategic entry into investment opportunities.
However, concerns over user trust and the platform's tarnished reputation stemming from content moderation issues and advertiser boycotts pose serious obstacles for the successful adoption of the "X Money Account." Restoring trust and improving content moderation practices are crucial for fostering confidence in X's financial features.
