It’s getting real: 𝕏 receives another money transmitter license 💸; PayPal’s next CEO is a step in the right direction 👏; Most active VC investors in July 🤑
FinTech is Eating the World, 14 August
Hey Everyone,
Happy Monday! I hope you had some relaxing time off because we’re starting the new week strong 👊 Today we’re looking at 𝕏 that just received another money transmitter license (it’s getting real + a deep dive into the Everything App), PayPal announcing their next CEO (it’s a step in the right direction + a deep dive into PayPal), and the most active VC investors in July (+ another overview with startup resources). Let’s jump straight into the hot stuff 🌶
It’s getting real: 𝕏 receives another money transmitter license 💸
The news 🗞️ Social media giant X (previously - Twitter) has received another money transmitter license for payment services. This time - in Georgia.
This is an important milestone for Elon Musk’s massive ambitions, so let’s take a look.
More on this 👉 Already back in January, Twitter (now X) has begun applying for regulatory licenses across the US and designing the software required to introduce payments across the social media platform.
In early July, Twitter Payments LLC, a subsidiary of Elon Musk’s Twitter social network, received its first money transmitter licenses after Michigan, New Hampshire, and Missouri approved the company’s applications. Today, Georgia joins the pack as well, leaving 46 U.S. states yet to weigh in.
The USP 🥊 A money transmitter license allows a company to provide transfer services or payment instruments. This differs from a license to conduct sales in that it’s meant to provide consumer protections for businesses that facilitate the transmission of money from one party to another, not just the purchase of products and services.
It remains unclear at this time exactly what offerings will be on tap if and when X Payments eventually rolls out. The company applied for licenses in all 50 U.S. states, and there’s no clear timeline for the approval process.
✈️ THE TAKEAWAY
Zoom out 🌍 This is a huge piece of news on many levels. According to people familiar with the company’s plans, Twitter Payments should initially offer fiat currency transaction services, probably similar to those provided by Stripe, Venmo, and PayPal. In other words - X Pay? In the future, the company reportedly intends to open the platform to cryptocurrency services (remember the eToro deal + all the crypto folks on the platform). Finally, it’s also been rumored that Twitter Payments plans to offer its own token with a project called Twitter Coin and that the company will even unveil its own wallet (Binance, are you following?). So everyone (and I mean everyone) should start paying close attention to X as it might be coming for your business very soon.
ICYMI: Elon Musk just killed the blue bird 🐦 Welcome to X Everything 𝕏 [deep dive with lots of extra reads]