Twitter readies new payment features with more regulatory licenses, Dogecoin gains traction

Twitter is gearing up to become a scalable Web3 platform, as an FT report indicates that the company is applying for regulatory payment licenses in the US. In addition, the Elon Musk-owned platform is developing the software programs needed to provide seamless payment services.

Elon Musk is working to broaden the revenue collection channels for the $44 billion company, which has been marred by a series of layoffs over the past three months.

Twitter payment features

Initially, Twitter relied heavily on advertising as its sole means of revenue collection, about $5 billion a year. However, Musk noted that Twitter was not sustainable on advertising revenue alone. Moreover, in addition to competition from other social media giants such as Meta, the advertising industry shrank significantly after Covid due to business failures and supply chain bottlenecks.

According to an FT article, Twitter is considering introducing fiat currency payments first, and then integrating crypto assets in the near future.

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As a result, the Dogecoin community, which is heavily incentivized by Musk’s tweets, has begun speculating on the issue. According to market data provided by Binance-backed Coinmarketcap, the price of Dogecoin rose 3% in the last day to trade around $0.09429. Interestingly, Dogecoin’s 24-hour trading volume rose 148% to $1,121,795,134 on Tuesday.

Musk reportedly working on an app “all“, with the Twitter acquisition accelerating the process by a factor of three years. Basically, Musk is developing a Web3 platform similar to WeChat in China. As part of the master plan, Musk intends to introduce Twitter users to peer-to-peer transactions, savings accounts and debit cards.

Twitter and the market outlook

According to reports, Elon Musk wants Twitter to generate about $1.3 billion in payments revenue by 2028. The plan, however, requires more money to hire software developers and ensure that an appropriate regulatory framework is in place. By leveraging the increase in monthly active users worldwide, the company is well positioned to earn more revenue from payments.

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Twitter is already a platform where payments are made, so it’s a no-brainer” said Lucy Ingham, head of content at FXC Intelligence.

Still, the social media platform will have to convince users of superior security compared to competitors like Venmo, Cash App and Zelle. In addition, most existing payment apps already support what Musk is doing with Twitter and at scale. As such, Musk will have to convince users of a better service than competing payment platforms.

Nonetheless, Musk has a track record of consistently growing technology companies to $1 billion in revenue.

Many technology companies experiment and then abandon” said Lisa Ellis, payments expert and senior equity analyst at research firm MoffettNathanson. “They find it’s a burden to ultimately bear the investment and the long-term risk – where you can be fined if there is a problem and you have to have a whole compliance infrastructure that has to be constantly licensed.

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