Elon Musk’s X payments ambitions face delays amid licensing Battles, regulatory hurdles, and staff exit

Elon Musk promised to turn X into more than just a social platform. His plan to bolt payments onto the service—essentially reviving the dream he once had with PayPal—was supposed to mark the first big step in transforming X into an “everything app.” But the project is already running into serious turbulence.

A recent report shows that Musk’s payments push has been slowed by regulators and internal turnover, raising questions about whether X can realistically reinvent itself as a financial hub. “Elon Musk’s plans to launch a payments service on X has been stalled by regulators and his uncompromising management approach,” The Information wrote.

Musk’s Big Bet on Payments

For decades, Musk has carried the idea of building a digital financial empire. After buying Twitter in 2022 and rebranding it as X, he began framing the service as a future home for peer-to-peer transfers, savings products, and maybe even broader banking services. The pitch was simple: use X’s user base to create a closed-loop financial ecosystem, reducing reliance on outside banks while generating fresh revenue for a company struggling to stay profitable.

The ambition is bold, but pulling it off requires more than vision. Building a payments system means winning approval from regulators, securing state-by-state licenses, and convincing users to trust X with their money. Those hurdles are proving harder to clear than Musk anticipated.

Musk’s Vision to Turn X Into a Financial Super App in Limbo Amid Licensing Battles and Internal Turmoil

To run a payments business in the U.S., X needs money-transmitter licenses in all 50 states. That involves scrutiny of anti-money-laundering safeguards, consumer protections, and operational stability. Regulators have reportedly been skeptical of X’s lean staffing model, which prioritizes speed and cost-cutting over compliance-heavy infrastructure.

The Consumer Financial Protection Bureau (CFPB) could play a key role in overseeing X’s financial services. At the same time, Musk’s political ties—through his involvement in the Department of Government Efficiency (DOGE) under the Trump administration—have drawn attention. DOGE has pushed to shrink the reach of agencies like the CFPB, and that influence has reportedly eased scrutiny on some of Musk’s other ventures. But even with political leverage, X’s payments rollout remains in limbo.

Abroad, pressure isn’t easing either. European regulators continue to demand strict privacy and financial safeguards, complicating X’s global ambitions.

A Push Towards the ‘Everything App’ Vision

Since acquiring Twitter in 2022 and rebranding it as X, Musk has been vocal about his plans to build a super app akin to WeChat, the all-in-one platform widely used in China. With features like payments, messaging, and social networking, Musk envisions X becoming a central hub for a wide range of user needs.

“2025 X will connect you in ways never thought possible. X TV, X Money, Grok, and more,” former X CEO Yaccarino wrote in a post early this year, teasing the platform’s expanding suite of services.

Trouble Inside X

Regulatory hurdles aren’t Musk’s only problem. X has been bleeding talent, especially in its payments division. High turnover has slowed progress as new hires scramble to catch up. Musk’s management style—intense deadlines, sudden policy shifts, and rigid performance expectations—has contributed to the churn.

That instability extends beyond the payments team. The company has struggled financially since Musk’s takeover, “barely breaking even” while managing debt repayments tied to the $44 billion acquisition. Legal settlements with former Twitter employees, totaling roughly $500 million, have further drained resources. With growth flatlining, resources are stretched thin, leaving little room to build the infrastructure needed for payments at scale.

What Comes Next

So far, only a handful of states have given preliminary approvals for X to operate payments. A nationwide rollout remains out of reach. Analysts warn that the longer the delays drag on, the more ground X risks losing to rivals like Meta, which continues to experiment with its own digital payment systems.

Some believe Musk’s ties to the Trump administration could eventually tip the scales if deregulation gains momentum. But critics argue that loosening oversight would put consumers at risk, especially if X ends up handling large volumes of sensitive financial data with minimal compliance staffing.

Meanwhile, advertisers continue to pull back, revenue has sagged, and shareholders are wary that Musk might siphon off resources from Tesla to keep X afloat. His push to turn the platform into a financial giant is far from dead, but the project is stalled at the starting line.

Musk once called payments the missing piece that could transform X into a super app. For now, it’s a vision mired in regulatory red tape and internal turmoil—with no clear timeline for when, or if, it will take off.