Twitter files paperwork with Treasury to become payment processor

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The Twitter Inc. logo is seen behind an Apple Inc. iPhone 6s displaying the company's mobile application in this arranged photograph taken in New York, U.S., on Tuesday, Feb. 9, 2016. (Michael Nagle/Bloomberg)

Twitter files paperwork with Treasury to become payment processor

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Twitter filed paperwork with the Treasury Department to enter the payment processing business, expanding Elon Musk’s vision for the company.

The social media platform filed registration paperwork last week with Treasury’s Financial Crimes Enforcement Network, according to the New York Times. This paperwork is necessary for any business that wants to be involved in money transfers, currency, and exchanges. Musk’s decision to move Twitter into the financial technology industry echoes his past at PayPal and his interest in replicating the Chinese social app WeChat.

Musk addressed these interests in finance in a call addressing advertisers, saying the company is expanding into commerce. Musk said Twitter had “a lot to do on the software side” and wanted to implement functions allowing users to buy products with a single click on Twitter.

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Twitter’s entrance into fintech is part of a more extensive series of changes organized by Musk that overhauls the way the company operates daily. Musk revamped the company’s verification process last week by attaching it to its premium service, Twitter Blue. He also laid off 50% of the staff to cut costs.

Musk’s interest in Twitter embracing a financial technology investment reflects his historical investments. The billionaire made one of his first significant investments into X.com, an online bank he founded in 1999 that would eventually become PayPal.

Musk’s vision of combining Twitter with an e-commerce app reflects his admiration of WeChat. Musk has praised the Chinese social app and expressed an interest in making his own “everything app” in the United States, leading some to conclude that Musk may use Twitter’s framework to construct the new version of X.com.

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Twitter previously experimented with providing financial services to users. The company launched a tipping service in September 2021, allowing users to pay creators directly for their content. If FinCEN approves Twitter’s paperwork, it will enable it to create more complicated payment systems to develop alternate sources of revenue besides the company’s advertising revenue.

© 2022 Washington Examiner

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