#2023 Creative Challenge#In the world Internet market, China's Internet payment can be described as a sudden rise, becoming an important market innovation, and is also considered an important application innovation by the world's richest man Musk, so that after his acquisition, Twitter (now renamed X) seriously Xi, just recently X obtained a license from 13 states in the United States, is the X version of WeChat Pay still far away?
1. Musk's X learning WeChat has gone one step further
According to Reuters, billionaire Elon Musk's social media platform X (formerly Twitter) received a money transfer license from the 13th state in the United States this week, bringing X one step closer to offering payment features.
The US state of Pennsylvania approved Company X's license earlier this week, which gives Company X the ability to facilitate remittances, paving the way for its users to transfer money to each other, Reuters said, citing data from the Public Licensing Database.
Aaron Klein, a senior fellow at the Brookings Institution who focuses on financial technology and regulation, explained that in order to provide payments to users across the U.S., Platform X would need to be approved by each state, a process that could likely take 18 months and millions of dollars.
Sabrina Howell, associate professor of finance at New York University's Stern School of Business, believes that Musk often makes controversial remarks, and his decisions at Company X are often unpredictable, which means that the biggest problem for Company X to enter the payment space will be to gain the trust of users and regulators.
After Musk bought Twitter, he considered building the social media platform into a "super app" like WeChat. "It's kind of like a synthesis of Twitter, PayPal, and a whole bunch of other stuff that brings it all together with a great interface. "It's really a great app. Outside of China, we don't have a similar product yet. ”
2. Is it far from being approved by 13 states to remit X payment?
What should we make of Musk's X's recent 13-state permission to send money, an event that marks a major step forward for the company in the payments space?
First of all, it was a landmark event for X to receive permission to remit money from 13 states. Musk's X company was granted permission to send money in 13 states, which is a landmark event. This license not only represents the further development of Company X's business in the payment space, but also means that it has taken an important step in the development of financial payment services in the U.S. market.
On the one hand, the remittance permits in these 13 states provide X with the possibility to do business on a larger scale. These states cover major economic regions in the United States, including important areas such as Pennsylvania. This means that X has the potential to attract more users and merchants, thereby further increasing its market share.
On the other hand, it is also a recognition of the X payment service. Previously, due to regulatory issues, X's payment services have not been widely promoted and applied. And now, with the licensing of these 13 states, it is possible that X's payment services will be more widely used.
Secondly, the successful experience of WeChat undoubtedly provides a valuable reference for X. As China's social giant, WeChat is not only a communication tool, but also a super app that integrates social networking, information, entertainment, shopping and financial services. Among them, financial payment services are one of the core competitiveness of WeChat. The popularity and convenience of WeChat Pay has greatly promoted WeChat's user growth and activity, making it occupy an unshakable position in the Chinese market. X Xi WeChat aims to build a similar all-round platform that enhances user dependence and loyalty by providing diversified services including payments.
Third, although Company X is trying to learn from the successful experience of Xi WeChat, the regulatory system in the United States is still very different from that in China. This would have been costly for X to be compliant, but now that 13 states have been granted permits, it is a milestone for X.
On the one hand, financial regulation in the United States is stricter than in China. For example, the regulatory requirements for financial payment services in the United States include capital adequacy ratio, risk management and other aspects, which require X to invest a lot of resources to meet.
On the other hand, the financial market in the United States is highly competitive. WeChat Pay already has Alipay as a pathfinder in the Chinese market, while in the United States, payment services such as PayPal and Venmo have taken a dominant position. Therefore, X needs to find its competitive advantage in order to gain a foothold in this market.
In addition, user Xi is also a challenge. In the United States, people are Xi paying with credit and debit cards instead of mobile phones. Therefore, X needs to change people's payment Xi by providing better user experience and services.
Fourth, in the long run, X's development prospects are full of possibilities. Despite the many challenges, as long as we can learn from WeChat's successful experience, especially in terms of user experience, security and ecological construction, X is expected to become a true "super app". The introduction of the payment function will further enrich the service content of X, increase the frequency and dwell time of users, and then drive the growth of other businesses such as advertising, e-commerce, and games.
Therefore, Musk's X company has obtained a remittance license in 13 states is an important milestone in its development in the field of financial payments. Despite facing many challenges, as long as we continue to learn and Xi innovate, there is still a lot of room for the development of X Pay in the future.