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Elon Musk Starts Twitter Payment Platform · Elon Musk Podcast

• 0:00
  Twitter has begun applying for regulatory licenses across the
• 0:03
  United States and its designing the software required to
• 0:07
  introduce payments across the social media platform.
• 0:11
  This is because Elon Musk is searching for new revenue
• 0:15
  streams to turn around the business.
• 0:17
  Esther Crawford, who's a lieutenant to musk inside of
• 0:21
  Twitter is started to map out the architecture and the
• 0:24
  software needed to facilitate payments on the platform with a
• 0:29
  small team. Now, these moves to allow
• 0:31
  payments through the site or a critical part of musk's plan to
• 0:35
  open up a fresh new Revenue stream.
• 0:37
  And that's because Twitter's five billion dollar a year
• 0:41
  advertising business. His cratered since Elon Musk
• 0:45
  bought the platform for forty four billion dollars in October
• 0:49
  and marketers say to concerns over management and content
• 0:54
  moderation. For the reason why they pulled
• 0:57
  most of their ads at the end of 2020.
• 1:00
  Elon Musk has said that he wants to take Twitter in a New
• 1:03
  Direction. He wants to offer fintech
• 1:05
  services, such as peer-to-peer transactions, savings accounts
• 1:10
  and debit cards. And this is all a master plan
• 1:13
  for the future to make it an everything app that incorporates
• 1:16
  messaging payments and commerce. And in 1999.
• 1:21
  Elon Musk is no stranger to this.
• 1:23
  He founded x.com one of the first online banks which later
• 1:28
  became part of paper. Fail, you may have heard of them
• 1:31
  and currently the team is moving forward with the plan to build a
• 1:36
  vault for storing and protecting user data that would be
• 1:39
  collected during the process of this fintech system.
• 1:44
  And that's what to people with knowledge of the team's efforts
• 1:47
  said, a Twitter is also pushing forward with regulatory checks
• 1:51
  needed before launching a payment service in states of the
• 1:55
  United States. So they already registered with
• 1:58
  the US Treasury as a payments. Sir.
• 2:00
  According to a regulatory filing, it had now begun to
• 2:03
  apply for some of the state licenses in order to launch and
• 2:08
  according to some sources, the remainder will be filed shortly
• 2:12
  and hope that the u.s. licensing process will be completed within
• 2:16
  this year. Now, the company would seek to
• 2:19
  expand gaining regulatory approvals all over the world
• 2:23
  internationally in the future. Now, Twitter has set up a
• 2:26
  subsidiary Twitter payments, LLC in August last year.
• 2:29
  Year, before musk took over the company.
• 2:32
  Now, most recently, appointed Crawford, Twitter's director of
• 2:36
  product management as the chief executive of Twitter payments
• 2:41
  but delivering musk's Vision will require taking on new
• 2:45
  technological challenges. Significant compliance burdens
• 2:48
  and winning consumer trust. It's also likely to be very,
• 2:52
  very costly and late last year, musk approach, Twitter's Equity
• 2:57
  investors into the attempt to raise more capital, It'll
• 3:00
  indicating the some of the money would be used to fund a hiring
• 3:04
  spree of programmers to build a super app that could process
• 3:07
  payments. Now, before musk took over
• 3:10
  Twitter, it's been exploring and testing payment features around
• 3:15
  tipping creators and also e-commerce.
• 3:17
  But musk's vision is much broader.
• 3:20
  It includes exploring more ways for users to reward creators
• 3:23
  directly for users to buy items directly through the platform
• 3:27
  and for users to pay one another Now the going back to the
• 3:31
  Creator's thing, it could be something like YouTube,
• 3:34
  according to One Source where you can do super chats or super
• 3:39
  stickers, or you can give the Creator a tip and this may be
• 3:44
  ported over to Twitter's new fintech platform, the everything
• 3:48
  platform in the future and people like mr.
• 3:51
  Beast the most popular YouTuber, his wanted this for a long time
• 3:55
  and has petitioned Elon Musk for this in the future.
• 3:59
  It said, he'd pour Over some of his content to Twitter if he
• 4:02
  could make money on the platform.
• 4:03
  And Elon Musk said, he wants to be a little bit different than
• 4:06
  YouTube and he wants his system to be Fiat.
• 4:09
  First and foremost, you pay with your regular bank account.
• 4:12
  But built for future proofing against crypto functionality,
• 4:17
  which could be potentially added at a later point.
• 4:20
  Now when an early pitch deck to investors in the acquisition
• 4:23
  deal in May seen by the financial times musk said he
• 4:26
  aimed for Twitter to bring it about 1.3.
• 4:29
  Three billion dollars in payments by 2028.
• 4:34
  Now, this pitch deck was first reported by the New York Times
• 4:38
  and data from payments markets. Data group.
• 4:41
  Fxc intelligence shows hundreds of thousands of Twitter users.
• 4:46
  Share links to third-party payment options either in their
• 4:49
  tweets or on their account. So, Twitter is already a
• 4:53
  platform on which payments happen, but if Twitter can take
• 4:57
  care of those payments, they would make Bulk of that money
• 5:01
  and another payment experts have questions, whether Twitter can
• 5:05
  achieve a competitive scale, particularly in the u.s.,
• 5:09
  there's things like zel cash app and venmo already in place.
• 5:13
  Could they take over some of that market share and Twitter
• 5:16
  already has a user base. So transferring those people to
• 5:20
  something like, then milk a scheppers l off site is a
• 5:24
  no-brainer for Twitter. They need to keep that on site
• 5:27
  and make them money for themselves Twitter.
• 5:30
  Will also face high levels of regulatory scrutiny, the move
• 5:34
  into payments comes after musk, is called more than half of the
• 5:38
  employees of Twitter, which raised fears that it's compliant
• 5:42
  Staffing just isn't there anymore.
• 5:44
  It's insufficient and businesses involved in money transfers and
• 5:48
  currency, exchanges or cashing. Checks are required to alert
• 5:51
  unusual activity, to authorities.
• 5:54
  There's been talks of Twitter partnering with stripe for such
• 5:58
  things and as a part of Monitoring for fraud suspicion,
• 6:01
  transactions user a kraut accounts have to be directly
• 6:05
  linked to a user's identity. So payment experts, and Senior
• 6:10
  Equity analyst of research company.
• 6:12
  Moffitt Nathanson said that people would have to add their
• 6:17
  social security number and some sort of identity in the future.
• 6:21
  So many tech companies, experiment and then they just
• 6:25
  give up on this idea. They find it to be too
• 6:28
  burdensome. And it's a long-term risk and a
• 6:32
  huge investment for them. And if they don't work it
• 6:35
  properly, they can have huge fines and they need to have
• 6:39
  compliant infrastructure and costly licenses in the future
• 6:45
  to. So they have a lot of hurdles to
• 6:47
  overcome for the fintech part of Twitter.
• 6:51
  So, this is a Long play for Twitter, this is for the
• 6:53
  everything app of Twitter because it isn't just for
• 6:56
  tipping creators. This is for the next cash app or
• 6:59
  the Next venmo, or the next zyl to be put in place by Elon Musk
• 7:03
  and make billions of dollars per year in profit for the platform.
• 7:08
  A real quick update about the SpaceX Starship potential, 33
• 7:13
  engine Raptor to static fire, that could possibly happen
• 7:17
  Monday, Tuesday, Wednesday of this week.
• 7:20
  Well, in the last podcast, I said it could possibly happen
• 7:23
  Tuesday or Wednesday. Well, the closure is been
• 7:26
  canceled for Road Highway Number 4, which is is the road that
• 7:30
  goes right next to Starbase Texas.
• 7:32
  So, Tuesday and Wednesday, the road closure has been canceled.
• 7:36
  The beach is open Monday, Tuesday, and Wednesday.
• 7:39
  No testing at Starbase Texas. Now possibly, there's a new
• 7:44
  primary date. That's happening Friday,
• 7:46
  February 3rd between 8 a.m. and 4:00 p.m.
• 7:50
  There's a possible closure and they cut that off at 4:00 p.m.
• 7:55
  because they have a deal. With Cameron County, the county
• 7:58
  that Starbase is in Saying that SpaceX won't test passed four
• 8:04
  o'clock at night on Fridays, because they want the Beach.
• 8:07
  Open, for the public to use that property.
• 8:10
  Now, months 6, 8 a.m. to 8 p.m. and Tuesday, February 7th, 8
• 8:15
  a.m. to 8 p.m. there's also a possible closure there.
• 8:18
  Loser, the alternative dates to the primary data Friday,
• 8:21
  February 3rd, but something very exciting happened.
• 8:25
  Last few days. Remember ship 24.
• 8:27
  I'm not sure if you heard the last podcast, but Ship 24s, 24
• 8:32
  is the ship, the Starship that's going to be on top of booster 7
• 8:35
  when they do the orbital flight test.
• 8:38
  Now every single star ship that's been produced so far, his
• 8:41
  head lift points at the top of the nose of the ship.
• 8:45
  And these lift points are used by a crane to move the ship
• 8:48
  around from point A to point B, put it on a transporter Etc and
• 8:54
  while they use it in the high Bay and do production and they
• 8:57
  do repairs to it, they use these lift points.
• 9:00
  To Shimmy it around and move it to the proper positions.
• 9:04
  Those have been removed from ship 24s nose, cone and there
• 9:10
  are new tiles that have been added to the lifting points of
• 9:15
  ship 24. Now, this is a big deal because
• 9:18
  now they can't lift ship 24 with the crane anymore.
• 9:22
  Also these tiles in place show that SpaceX is indeed ready to
• 9:28
  launch ship 24. Or for the orbital flight test
• 9:33
  in the near future. There's a possibility that we
• 9:35
  could see that the next month, maybe two months, but we could
• 9:40
  also be waiting on the FAA for a while to do the FAA inspection
• 9:46
  of the site and also of the rocket, the SpaceX works very
• 9:50
  closely with the FAA. So I'm assuming they're in
• 9:52
  complete communication at all times and they will be
• 9:57
  transmitting data to the FAA as they see fit.
• 10:01
  So a huge news ship 24s. Nose cone has been tiled which
• 10:06
  is the next step for ship 24 before the 33 engine static fire
• 10:12
  at Starbase which could possibly happen Friday Monday or Tuesday.
• 10:16
  And once the static fire is complete, they'll move ship 24
• 10:21
  down to Starbase and stack it back up on top of the booster.
• 10:27
  So exciting stuff happening from Starship Camp down there at
• 10:32
  Starbase Texas, Highway for right on the coast and Boca
• 10:36
  Chica Beach, got to be amazing in the next few months, what's
• 10:40
  going to be happening down there.
• 10:41
  Now, remember that, this is a test vehicle and the test
• 10:46
  Vehicles sometimes, don't go well in their flights.
• 10:50
  So if they make it past the launched, our past the orbital
• 10:54
  flight pad, it's going to be a great day.
• 10:56
  That's what Elon Musk has said. And if they make it to the Gulf
• 10:59
  of Mexico, which is Literally about a mile out from where
• 11:03
  they're launching from. There's possibility that they go
• 11:06
  even further. The the booster is going to land
• 11:09
  of the Gulf of Mexico. It's going to be a, they're
• 11:11
  going to trash the thing. Basically looking to try to do a
• 11:15
  landing of this booster. Booster seven in the Gulf of
• 11:18
  Mexico, a hover Landing, it's going to reignite, three Raptor
• 11:21
  engines to Coast it back into the Gulf of Mexico.
• 11:24
  And then the ship ship. 24 is going to go all the way to about
• 11:27
  Hawaii about South of Hawaii near Kawaii.
• 11:30
  And it's going to do a orbital flight test all the way there.
• 11:33
  And hopefully we'll get a hover of ship 24 when it gets too
• 11:37
  Kawaii. It's going to be an amazing
• 11:38
  sight but it's going to be again.
• 11:40
  It's a test vehicle, so they don't need to recover it.
• 11:43
  So they're basically trashing it in the ocean in the Pacific
• 11:47
  Ocean and that's a, it's a shame that they get have to get rid of
• 11:52
  this. But also, they're going to
• 11:54
  gather so much data from this flight that they're already onto
• 11:58
  ship 25. There are already on to the
• 12:00
  next. Booster, they've already moved
• 12:01
  on from these two. This is a test to see if all the
• 12:04
  everything works. If the ground systems work, if
• 12:07
  the ship works, if the booster works, if all the Telemetry data
• 12:11
  comes back, the way that they want it to come back, that's
• 12:14
  exactly what this is for. This isn't to recover these
• 12:16
  ships and put them in a museum someplace.
• 12:19
  This is basically the first iteration of something that
• 12:23
  they're going to build hundreds of think of it as the assembly
• 12:26
  line for a vehicle for a car, right?
• 12:28
  You have to have those test dummy cars.
• 12:30
  The ones that you see the test dummies and and they cracked
• 12:32
  like the crash cars. That's kind of what this is at
• 12:35
  this point and it doesn't it doesn't seem like the right
• 12:39
  thing to do but it also seems like the perfectly right thing
• 12:42
  to do at this point because they need to have this ship ready to
• 12:45
  go and ready to fly. And when they fly it and when
• 12:49
  they land it, the get all that data.
• 12:51
  Going to put it all together and they're going to make the next
• 12:53
  flight even better. So coming up in the next month.
• 12:57
  Maybe two months. We're going to see something
• 12:58
  absolutely astonishing and I I cannot wait for that.
• 13:02
  I want to take a second and say, thank you for everybody who's
• 13:05
  listening to the show right now. If you could take a second and
• 13:07
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• 13:13
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• 13:17
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• 13:22
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• 13:27
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• 13:30
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• 13:43
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• 13:44
  So please bear with me while I like to add all of this stuff.
• 13:48
  Okay, that's it for today. I appreciate you stopping by
• 13:51
  today and I'll see you in the next one.
• 13:53
  Take care.