As expected, Elon Musk has provided us with a hint of what he intends to do with his new acquisition—Twitter. During a Twitter Spaces he held with Twitter advertisers, Musk suggested that users would be able to send money to others on the platform, and extract funds to authenticated bank accounts in the future.
Recall that The New York Times had earlier reported that Twitter had filed registration paperwork that would allow it to process payments. The NYT cited Twitter’s filing with the Treasury Department’s Financial Crimes Enforcement Network. It however, noted that a business is required to register before it could carry out money transfers, exchange currency or cash checks.
Introducing payments to the platform would not be a bad idea; Twitter has over the years become a place where millions of people meet to have all manners of conversations.
The payment feature is one for the future; for now, the company has a lot to deal with. Musk and his team has a lot of work to do if they must convince companies like GM to return to the platform.
Last week, General Motors announced that it had suspended paid ads on Twitter.
“We are engaging with Twitter to understand the direction of the platform under their new ownership,” the company said in an emailed statement to TechCrunch. “As is normal course of business with a significant change in a media platform, we have temporarily paused our paid advertising. Our customer care interactions on Twitter will continue.”
Twitter’s major revenue comes from advertisers, and will need to act swiftly to assure them that the platform is the right place for them. Musk had blamed advocacy groups and activists as the reason companies like GM and General Mills do not want to continue doing business with Twitter.
In the livestream session he held with advertisers and brands on Wednesday, Musk said: “The best way to understand what’s going on with Twitter is use Twitter.”
How Wednesday’s meeting with brands and advertisers would help remains to be seen. I guess we will see how this works in the next couple of weeks as the company has a lot to deal with at this time.