PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Elon Musk Wants to Make Traditional Banks Obsolete

By Connie Diaz De Teran
October 30, 2023
in Analysts Coverage, Merchant, Mobile Apps
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
super app

Elon Musk has announced plans to convert X (formerly known as Twitter) into an all-inclusive financial hub. At an Oct. 26 meeting, according to reports, Elon Musk and X CEO Linda Yaccarino told employees that new features are set to roll out by the end of 2024.

These developments are in line with Musk’s vision of transforming X into the next super app, akin to the current WeChat super app in China, whereby users can pay bills and make peer-to-peer payments.

X is continuing its efforts to secure money transmission licenses throughout the United States. Musk has said his ultimate goal is to offer a wide range of financial services that would usurp the offerings of traditional banks.

“When I say payments, I actually mean someone’s entire financial life,” Musk said, according to an audio account of the meeting attained by The Verge. “If it involves money, it’ll be on our platform. Money or securities or whatever. So, it’s not just like send $20 to my friend. I’m talking about, like, you won’t need a bank account.”

“Musk’s plans for X would see X join the race to serve as a financial super app that consumers turn to for all of their financial needs,” said Daniel Keyes, Senior Analyst for Merchant Services at Javelin Strategy & Research. “But considering that X will be starting from scratch in the financial space, while competitors have been offering a bevy of financial services for years, it will have trouble gaining traction as a financial hub.”

“It also remains to be seen if many consumers will trust X enough to share their financial data with the company, which will be necessary for this initiative to get off the ground.”

The Rise of the Super App

With convenience and efficiency in payments high on consumers’ wish lists, super apps are growing in popularity. They offer a way to perform multiple functions in one consolidated platform.

The Western world has yet to catch on to the concept of providing banking, shopping, and other types of services in one application as it is done in Asia, but that could be changing. Uber recently launched a product within its app that allows users to book experiences such as live events and dinner reservations.

Meta plans to dip its toes into the financial sector with financial lending within its apps. Discussions with lending partners have already taken place. Furthermore, intending to remove the complexity of juggling multiple shopping and financial apps, PayPal launched in-app shopping tools, a savings account, and bill payments.

Amid all these ambitious and strategic efforts, regulators have already clamped down on fintech companies. The Consumer Financial Protection Bureau has already demanded that large tech firms reveal their business plans. It remains to be seen just how many of these budding U.S. super apps will be allowed to flourish.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: BanksCFPBElon MuskFinancial InstitutionMetaPayPalSuperAppsUberWeChat

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Proof That Fintechs Are Disrupting Banks:

    In Today’s Fintech Market, Value Is Everything

    August 30, 2024
    DFAST test

    Dodd-Frank Stress Tests: Good News for Now, Watch for a Rugged 2025

    August 29, 2024
    Real-Time Payments Adoption in the U.S. Requires a Pragmatic Approach, ISO 20022 messaging challenges

    ISO 20022 Brings the Challenge of Standardization to Swift Participants

    August 28, 2024
    open banking small banks credit unions

    Open Banking Can Be an Equalizer for Small Banks and Credit Unions

    August 27, 2024
    Payments 3.0

    Achieving Seamless and Holistic Transactions with Payments 3.0

    August 26, 2024
    embedded finance, ecommerce, consumers reduce spending

    Quality Over Quantity: Key Priorities in the Payment Experience

    August 23, 2024
    bots fraud

    Next-Generation Bots Pose Formidable Fraud Challenge

    August 22, 2024
    crypto custodians

    Crypto Custodians Could Bring a Revolution in Holding Assets

    August 21, 2024

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Digital Assets & Crypto
    • Debit
    • Digital Banking
    Menu
    • Commercial
    • Credit
    • Digital Assets & Crypto
    • Debit
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    Menu
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    Menu
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result