Elon Musk is transforming X (formerly Twitter) into a super financial app, complete with a debit card and integrated investment and trading services, taking inspiration from the WeChat model.
The Musk Vision Takes Shape: A WeChat-Inspired Super App
Elon Musk is accelerating the transformation of X (formerly Twitter) into an all-in-one “super-app“. The latest step in this evolution is the imminent arrival of integrated financial services, including trading and investment. This announcement was made by Linda Yaccarino, the CEO of X, during the Cannes Lions Festival. The goal is to allow every user to manage their entire financial life through the app. Quite a lofty ambition.
From peer-to-peer payments to buying crypto, from tipping a creator to investing in stocks, Musk aims to turn X into a Western version of WeChat, the all-encompassing app used by a billion Chinese users. The first tools are arriving rapidly: an X-branded debit card is already in the works.
You will be able to come to X and perform all the transactions of your financial life on the platform. Whether it’s paying you for the pizza we shared last night or making an investment or a transaction. That’s the future.
X Money: The First Stage of the Rocket
Prior to the stock market, it’s time for payments. X will launch its own digital wallet called “X Money” this year, with Visa as a partner. This wallet will enable peer-to-peer money transfers, storage of value, making purchases, and supporting creators. Initially in the United States, then globally.
For Musk, these tools signify the beginning of a truly integrated financial ecosystem. “A complete universe of commerce and finance will arise on the platform“, promises Yaccarino.
A Risky Yet Necessary Turn?
This pivot towards fintech is not without risks. By venturing into payments, X will need to navigate a slew of regulations: licenses, anti-money laundering efforts, banking compliance… Not exactly Musk’s favorite playing field.
But the stakes are high. Since its $44 billion acquisition, the former Twitter has struggled to regain its balance. Ad revenues have plummeted, major brands fleeing due to lax moderation practices… and the incendiary tweets by Musk himself.
Advertising Returns, But Under Pressure
According to Yaccarino, 96% of former advertisers have returned to X. She even assures that 2022 levels will soon be reached. However, at Cannes, advertising agencies are skeptical.
Some speak of direct pressure to purchase ads, under threat of legal action. The Wall Street Journal even mentions cases where brands like Verizon or Ralph Lauren allegedly succumbed to these threats. X denies all allegations. “Just rumors“, dismisses the CEO.
An Alliance with xAI to Revive the Engine
The latest lever pulled: artificial intelligence. Since X’s acquisition by Musk’s xAI startup for $45 billion in March, promises have been overflowing. Yaccarino talks about “real-time” targeted advertising, based on current trends. And claims that the number of engineers has doubled.
The Bet on Total Integration
With X Money, a future debit card, a trading service, and AI to grease the wheels, Musk wants to create more than just a social network. He aims to replace your bank, your payment app, your stockbroker. An immense ambition… but in line with his style.
The challenge now is to convince users and regulators.
