Elon Musk the Banker Wants to Take On Dimon Where Google Failed
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Elon Musk intend to make Twitter a financial services app as well, this plan was segment of the rebranding of Twitter with letter ‘X’.
The Billionaire plans is to convert Twitter into a one-stop shop for financial services. Its barely the first time a tech giant has striven to muscle in on Jamie Dimon’s turf.
Facebook exhausted years investing in a project referred as Libra, which was assumed to retrieve cross border payments, but the regulations surveillance compel it to give up the thrust. Google intended to offer digital financial services and even made agreement with 11 banks as paffliates for the launch beyond it instantly halted the whole plan. Amazon.com Inc. deemed offering checking accounts for users, still that venture did not come into existence.
Certainly, Elon Musk is not like other tech execs. His business verdicts do not incline to plot foreseeable paths, as proved by his many dreadful steps at Twitter, with giving up its iconic bird-based brand for the letter X. Blomberg further writes that he also has undergo in financial technology, have build a company, known as PayPal Holdings Inc.
But history advocates a difficult battle for Elon Musk. The market is filled with US technology companies that strained to take on banking giants, just to scale back their objectives in the face of battle and delayed approval procedure.
Pranav Sood, executive general manager at Airwallex at cross border payments platform, said that he is not saying al all that he can not do this. But its something that would be time taking and sometimes takes investments, because you have to ensure that do things in accord with the global regulations.
Elon Musk’s innovated X app, that will link Twitter’s underlying structure with x.com, a web address that now operates as a steering service to Twitter, is one that layers communication, multimedia, and the capability to execute your whole financial world.
Linda Yaccarino, Twitter chief executive officer said that X would comprise fintech features like payments and banking. Twitter has already obtained money transfer certificate in four US states, Michigan, Missouri, Arizona and New Hampshire.
Furthermore, Bloomberg published that it was a foresight Elon Musk had posted in 2022 while his acquisition of the social media platform. His thoughts designated he wanted Twitter to be more like Tencent Holdings Ltd’s WeChat, a messaging service app used by over a billion people in China. Ot is also a fintech platform that permits customers to transfer funds each other. Pay for goods and services, and even borrow money.
It would not be Elon musk’s first venture into payments. He takes steps towards Silicon Valley while the dotcom bust, and established a firm, known as x.com, which ultimately became PayPal. He made his first fate when PayPal was acquired by eBay Inc. As for banking, Elon Musk has stated that he abjured various high paid jobs on Wall Street to pivot on technology, a decision which is worked for Elon Musk, now he is a billionaire with the value of net assets $238.9 billion, as per the Bloomberg Billionaires Index.
But including banking and payment features would demand from customers to get easy with a firm with a brand-new product name and its own core of financial distress after Musk charged Twitter with high-cost debt.
WeChat, Alipay
Tech platforms across the world are awing for paths to well monetize their keep going user bases and product offerings, and have foreseeable the pattern, loyal commitment users have with their banks and other who offering financial services. Together with, happy to duplicate the resistance that players like WeChat and Ant Group Co’s Alipay have obtained in China.
In current years, US tech firms have invested in strengthened their payments and financial services abilities. In some cases, although, their struggle has been undersized by scrutiny from lawmakers and regulations.
Meta Platforms Inc.’s Facebook, introduced the Libra Association in 2019. The plan was that the firm and its payments could utilize stablecoins to make it economical and easier to provide remittance to users. Politicians and regulators ordered Facebook to immediately turn back the project and major partners encompassing Mastercard Inc. and Visa Inc. give up the partnership within months.
Alphabet Inc.’s Google has tried hard to become the pioneer medium of commerce in the US, in spite of similar success in other countries like India. Last Year, Company set plans to include bank accounts to its payment app after it had partnership with others such as Citigroup Inc. for months on work.
Amazon negotiated with banks like Dimon’s JPMorgan Chase & Co. and Capital One Financial Corp. to provide checking accounts, but all in vain.
Elon Musk Aims Halted
However, Elon Musk’s former firm has foreseen to become a WeChat-style supper app, just two years ago, when PayPal was worth over Citigroup and Goldman Sachs Group Inc. combined, the firm plotted an aim into new markets encompassing stock trading and high-yielding savings accounts as the firm foresee to go beyond its origin as an iconic checkout button.
But, currently after the company’s stock was banged amid a decline in outlay on the firms’ payments platforms, PayPal has had to leave behind those ambitions. Now, chief executive officer, Dan Schulman, is again focused on enhancing the checkout button instead of converting PayPal into a one-stop shop for its user’s financial demands.
Further added that their first priority is progressively to enhance the branded checkout experience, this is the core of what they are doing, Bloomberg disclosed.
The conversion to providing financial services is not a simple thing, in the US banking market given tough competition, powerful regulatory scrutiny and a high level of stickiness among finance consumers, said Jeff Tijssen, global head of fintech at advisory firm Bain & Co.
Additionally, he added that you will then require a thing of a very forcing value proposition that is truly distinguishing in order to stand out.
