Twitter's payment system prepares for potential crypto integration

Wednesday 1 February 2023 13:42 CET | News

Twitter has sought regulatory approval across the US for its new payments architecture that is in the works.


Elon Musk, the owner of Twitter, is moving ahead with plans to bring payment functionality to Twitter, bringing another revenue stream to the struggling social media giant. Though the technology will primarily be fiat-focused, it will be built so that crypto-functionality can be added in the future.

Twitter seeks regulatory approval across the US for its new payments architecture that is in the works.

Twitter’s relationship with payments

As reported by the Financial Times, Twitter has employed a small team to map out the architecture for bringing payments to the platform. The company has also been applying for state regulatory licenses across the US to become eligible for the task, after registering with the US Treasury as a payment processor in November 2022. It hopes for complete US licensing within a year, and then expand internationally.

Elon Musk has previously shown interest in bringing a suite of payment services to Twitter, ranging from peer-to-peer transactions to debit/ credit cards, creating an ‘everything app’ that facilitates payments, commerce, and messaging. It would even allow people to buy products directly through the platform.

The play with cryptocurrencies

Musk has also teased adding a Dogecoin payment option to Twitter – though no plans of the like have been confirmed yet.

An early Pitch Deck to investors in May 2022 showed that Musk planned to reign in USD 1.3 billion in payment revenue from Twitter by 2028, according to The New York Times. It represents another move by Musk to make Twitter more profitable, including placing verification behind a paywall and cutting thousands of employees from the business.

Before Musk took over, Twitter was already exploring both tipping and ecommerce features. Lightning-based Bitcoin tips were included in these updates, with Ether tips and NFT support following soon after.

Elon’s moves cause spikes in Dogecoin

Following the Financial Times’ reporting on the subject, Dogecoin briefly spiked before dwindling back to the initial value within a few hours.

Dogecoin has a history of reacting to Elon Musk-related news, whether or not it’s related to the specific meme coin. The digital currency surged 22% ahead of Musk’s takeover of Twitter, as he was moving into Twitter HQ.

Musk has previously suggested that Dogecoin is better than Bitcoin at handling transactions, due to its larger block size limit, and faster block speed. He also regularly interacts with the meme coin’s creator, Billy Markus, over Twitter.

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Keywords: Twitter, cryptocurrency, payments infrastructure, product upgrade, debit card, credit card
Categories: DeFi & Crypto & Web3
Companies: Twitter
Countries: World
This article is part of category

DeFi & Crypto & Web3


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