X’s New Encrypted Chat Beta and Challenges Ahead for In-App Payments Integration
Introduction of Enhanced Messaging with X Chat
X has launched a beta test for its updated “Chat” feature, focusing on a rebuilt DM system with end-to-end encryption and enhanced privacy. Users set up their chat profiles with a four-digit code, adding an extra layer of security.
Linking Messaging to In-Stream Payments
This messaging revamp is designed to support X’s plans for in-stream payments, allowing users to securely send money within chats. The platform also aims to enable users to load and save money within the app, moving towards a comprehensive financial ecosystem.
Elon Musk’s Vision: A Western WeChat
Inspired by China’s WeChat, Musk envisions X as an “everything app” combining social, payments, and banking functionalities. This vision reflects Musk’s long-term ambitions, dating back to his early PayPal concepts.
Obstacles in Adopting Integrated Social Payments in Western Markets
- Previous attempts by Meta and others to integrate payments within social apps have met limited success.
- Western users tend to keep social media and shopping separate, favoring established payment providers for security and reliability.
- Regulatory hurdles have impeded X’s payment processor licensing in key U.S. states, citing concerns over ownership ties with Saudi Arabia.
- Payment functionality has been delayed beyond initial expectations, with no widespread activation yet.
Future Outlook and Challenges
While X’s new chat infrastructure is the first step toward integrated payments, significant regulatory and user adoption challenges remain. The platform’s shrinking user base adds an additional obstacle to widespread adoption of in-app financial services.
Despite these challenges, Elon Musk’s history of tackling difficult projects leaves room for potential breakthroughs as X continues to roll out its updated chat and payments features.
Source: Social Media Today – Latest News by Andrew Hutchinson. Read original.
