Elon Musk Launches Payment Service Without Crypto Integration
DOGE enthusiasts might face disappointment as Elon Musk has no plans to integrate the popular meme coin into the forthcoming X payment system. Additionally, the social media platform will not initially support any cryptocurrency transactions.
Since December 2023, there have been rumors that Musk was actively preparing to launch a payment platform incorporating DOGE. In an interview with Cathie Wood, he mentioned that payment services would be operational on the social media platform by the middle of the next year. The crypto community reacted with enthusiasm, speculating about the potential surge of “the dog-themed coin” if it became the internal currency within X.
However, according to recent updates from Bloomberg, which accessed documents related to the application for a payment operator's license, the X service will not support cryptocurrencies. Instead, Musk is developing features similar to those of Venmo.
Musk has consistently stated that the platform requires additional revenue sources besides advertising, which has historically made up over 90% of its revenue. He has also suggested that X could become the world’s largest financial institution.
Nonetheless, the documents reveal that X does not plan to impose significant fees for its payment services. Rather, the company views payments simply as a means to enhance its business by increasing user participation and engagement.
Although some aspects of this project remain unclear, numerous previously undisclosed documents provide some insight into the arrangement.
For example, Musk plans to create a subsidiary named X Payments, which has already received a money transfer license in 28 US states and is aiming to legally cover the entire country. X Payments will offer users diverse payment options, similar to those found in Venmo or Zelle.
It's important to note that Venmo is a mobile P2P payment app used for splitting bills, making purchases, or simply transferring money. Venmo does not charge fees for personal transfers between friends and family when made from a bank account or debit card. It's a highly convenient service used by millions. However, for the crypto community, there's a significant limitation: all transactions are exclusively in fiat currency.
Therefore, the crypto community should temper its expectations. For now, Dogecoin will not receive additional incentives.
DOGE unlikely to integrate with X. Source: siamblockchain
Will this service live up to Elon Musk's and Linda Yaccarino's expectations of enhancing the platform's appeal? We'll soon find out.
X's top management is now launching the boldest initiatives to improve the company's financial standing. Since the ownership change in April 2022, the platform's revenue has dropped by 40%. Just in the first quarter of 2024, the company reported a balance of -$456 million.
How could the creation of a Venmo-like payment system assist? To compete with an operator that already holds a significant market share, X Payments would need to offer unique features. Are such features planned? Known for his impulsive and risk-taking nature, Elon Musk often makes decisions based on personal insights that may not be immediately apparent to others.
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