It’s no secret that Elon’s master plan is to evolve X into a super app, or as he puts it “the everything app.” This week, the latest domino fell. X laid out its 2024 road map, which includes integrating peer-to-peer (P2P) payments. As we’ve examined, in-app payments are one of a few cornerstones of super apps.
Backing up, what is a super app? Just like it sounds, it’s a Swiss army knife for personal utilities. It usually involves a combination of social connection, messaging, shopping, on-demand services (think: transportation), and payments. A few models already exist throughout Asia, such as WeChat.
The benefits of super apps are fairly straightforward: sticky and persistent user behavior, not to mention several dimensions to monetize that engagement. We’re talking recurring subscriptions, payment processing, local ads, and brand-sponsored content. It’s the poster child of revenue-diversification.
For all these reasons, super apps are a common ambition but rarely come to fruition due to all the moving parts. For example, we’ve heard whispers of super apps from the likes of Uber which sits in a position to parlay transportation, payments, and food delivery into a source of on-demand everything.
Ep. 32 Asks Will Apple GPT Kill Siri & Does “X” Mark the Super App?
Bee’s Nest
Back to X’s payment plans, they became more explicit this week, including timeline commitments. Particulars will be revealed in time but the high-level vision is that X users will be able to send money to other X users or businesses on the platform. Funds will be drawn from authenticated bank accounts.
Beyond this payments framework, X teased additional fintech functionality such as offering X users high-yield money market accounts. That of course brings PayPal closer to being a bank, which is a regulatory bee’s nest, as Elon knows, but could offer more dimension to the super-app master plan.
Speaking of regulations, all the above has been in the works for months including necessary licenses for payment processing. These occur on a state level so they require some doing. But X is well on its way with licenses secured in 14 U.S. states. Only 36 to go… not to mention rest-of-world requirements.
All of this tells us two things. 1: Elon is serious about this move. 2. It may take longer than X is indicating. But when it comes to road maps, the latter is par for X’s course. As for other road map commitments specified this week, X plans to beef up its AI-powered experiences like Grok (a story for another day).
Mafia Ties
None of the above is a surprise as Elon has telegraphed it since he acquired Twitter. And he’s not wrong… Socially-fueled communications apps with built-in network effects and sticky/frequent engagement are solid starting points for super apps. How do you think WeChat got to where it is today?
Another starting point with ample potential – though limited execution so far – is payment apps, as noted. We say that as it’s the most complicated and challenging, yet foundational, part. Payment players like PayPal and Square/Block already have that part nailed, though they’rv been gun-shy on super apps.
Moreover, the payments piece is where X could have an advantage. Don’t forget that Elon was one of the co-founders of PayPal, along with Peter Thiel. In fact, the PayPal Mafia runs deep, including Jeremy Stoppleman (Yelp), Max Levchin (Affirm) and Keith Rabois (Khosla Ventures, as of yesterday).
Altogether, this is one answer to how Elon could recoup and exceed his $44 billion investment in X, which has since plummeted in value (due partly to his own grandstanding). Either that, or Christian Ward is right: X’s hold on human communications makes it one of the world’s most powerful AI training sets.
