It is reported that Musk's social media platform X received a money transfer license issued by Pennsylvania this week。

Pennsylvania approved the decision on Monday (Dec. 11), according to the public licensing database.。Pennsylvania also became the 13th state to approve an X remittance license, after Arizona, Georgia, Wyoming and Maryland, among others, also approved it.。

With this license, X can transfer money and make payments locally like PayPal and other software.。

Since the acquisition of the social platform in October 2022, Musk has proposed plans to mold X into a "universal app," similar to China's Tencent-owned app WeChat, through which users can send messages, call taxis or pay merchants.。

In October, it was reported that Musk told X internal employees that new features would follow, when users should be able to carry out "the entire financial life" on the platform, and he expected the new features to be "launched by the end of next year."。

Aaron Klein, a senior fellow at Brookings Institution who focuses on financial technology and regulation, said that in order to offer payment services to users across the United States, X would need to get approval from each state, a process that could take up to 18 months and cost millions of dollars.。

A move into payments could help X diversify beyond advertising, after all, the company's advertising business has suffered setbacks since Musk bought X.。According to insiders, X's advertising revenue will reach about $2.5 billion in 2023, a sharp decline from previous years Recently, Musk has been caught up in a storm of support for anti-Semitic posts, leading some major advertisers to choose to suspend advertising on X.。And Musk has no good face for these advertisers, telling them to "fuck off."。

Sabrina Howell, an associate professor of finance at New York University's Stern School of Business, believes that Musk's multiple controversial comments and the unpredictable nature of his decisions at X mean that gaining the trust of users and financial regulators will be the "biggest problem" X faces in moving into payments.。

There's a U.S. state official who says their state is reviewing X's remittance permit application。The official said the continuing headlines about Musk and X will be taken into account when the state government reviews the application.。

Brookings Institution's Klein said: "X has struggled since Musk took over... It's hard to see a web application that is in some way shrinking in business successfully moving into new territory.。"

It is understood that before Musk took over X, the company began to file applications in some states。The company's initial strategy at the time was to first apply for a license in a state with relatively lax requirements.。Musk also continued this strategy after taking over.。Following that, the company will submit applications to states such as New York and California, which are expected to have a more rigorous review process.。

Howell of New York University's Stern School of Business said that in addition to obtaining a government remittance license, X would need to have a banking license to hold users' funds, another regulatory hurdle, though X would also have the option of entering into partnerships with existing banks.。