Twitter might be planning to enter the payments industry. The company’s new owner and CEO Elon Musk recently hinted at this possibility in a Spaces Q&A for advertisers. Musk envisions the social network having its own payment system. It will allow users to link their bank accounts to Twitter and send money to each other.
According to The New York Times, Twitter has already gotten started with this plan. The publication has seen a filing with the Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, that reveals that the social network has filed registration paperwork for its payment system (via). Filed last week, there isn’t much information about this registration. But it’s an indication of how Musk plans to quickly get his ideas about Twitter’s future across and start work on those.
Twitter is planning an in-house payment system
Musk sees an in-house payment system as a tool for the social network to entice creators. He has already announced that Twitter will allow creators to monetize all forms of content. Enabling them to link a bank account directly to their Twitter account will simplify the process of withdrawing money. With no third-party payment processor involved, we may be looking at a lesser payment cut as well. Then there’s the ability to directly send the money to someone on the social network app.
“Now we can say that, okay, you’ve got a balance in your account, do you want to send money to someone else within Twitter?” Musk said. His idea is to offer an “extremely compelling money market account” with everything from debit and credit cards to other payment-related services. Elon Musk helped co-found PayPal, so he knows how he wants to go about this plan. We will have to wait and see how swiftly Twitter progresses with this idea of launching an in-house payment system.
The new Twitter CEO has already said that the company will do “lots of dumb things” in the coming months. He was referring to recent and upcoming changes such as the new “Official” label that briefly appeared yesterday. The social network will continue experimenting with these kinds of features. It will keep what works and change what doesn’t. Time will tell if the idea of a payment system works for Twitter. We should learn more about this plan in the coming months. Musk tends to regularly update Twitter users about what is happening at the company. So stay tuned.