According to a Financial Times report, Twitter is preparing (1) to become a scalable Web3 platform. The business is reportedly filing for regulatory payment permits throughout the United States.
In addition, the platform that Elon Musk controls is working on establishing the necessary software systems to ensure that the payment services are frictionless. The $44 billion firm, hampered by a series of staff cuts in the past three months, is the focus of Musk's efforts to broaden the revenue-collecting routes available.
Payments Options Available on Twitter is Increasing
At first, the majority of Twitter's revenue—approximately $5 billion per year—came from advertising, as it was the company's only source of income. However, Musk pointed out that Twitter could not survive on its advertising income alone for the foreseeable future.
In addition, aside from the direct competitors from other big social media companies like Meta Platforms Inc, the advertising industry has significantly shrunk after Covid due to business failure and supply chain bottlenecks. This is the case even though the industry is still facing competition from other social media giants.
According to a Financial Times (FT) report, Twitter is looking at the possibility of integrating fiat payments initially and, subsequently, crypto currency assets in the not-too-distant future.
Consequently, the Dogecoin community, which receives significant motivation from Musk's tweets, started speculating on the subject. The market data supplied by tradingview.com indicates that the price of Dogecoin has increased by 5.68 percent over the previous day to trade around $0.09334.
On Tuesday, the 24-hour traded volume of Dogecoin skyrocketed to a staggering $1,121,795,134, up 148 percent from the previous day.
It has been said that Musk is working on an app that does everything, and the acquisition of Twitter is serving as an accelerant by a score of three years. To put it simply, Musk is working on a Web3 platform comparable to China's WeChat. Musk intends to introduce peer-to-peer transactions, savings accounts, and debit cards to the users of Twitter as part of the overall master plan.
How is Twitter Sailing After Musk Takeover?
According to recent reports, Musk plans to have Twitter generate around $1.3 billion in sales income by the year 2028. However, the idea will require more funding to recruit software engineers and guarantee that an appropriate regulatory framework is implemented.
The firm is positioned to increase its income through payments due to the growing number of monthly active customers worldwide.
According to Lucy Ingham, head of content at FXC Intelligence, "it's a no-brainer" because Twitter is already a platform on which payments happen.
However, to beat off competitors like Venmo, Cash App, and Zelle, the social media platform must demonstrate to its customers that it offers the highest possible level of security.
In addition, the vast majority of the already available payment applications enable what Musk is accomplishing with Twitter on a large scale. As a result, Musk will need to persuade consumers that his payment network offers a superior experience to competitors.
Despite this, Musk has a well-deserved reputation for successfully leading tech firms to revenue of one billion dollars or more.
According to Lisa Ellis, a specialist in payments and senior stock analyst at the research company MoffettNathanson, "many technology businesses explore and then give up. They find it to be a hardship to finally shoulder the long-term investment and risk," defined as "where you can get penalized if there's an issue and you have to have a complete compliance infrastructure that needs to be regularly licensed."