According to a recent report by the Financial Times, Twitter is seeking regulatory licenses in order to allow payments on its platform.
This is part of CEO Elon Musk's plan to diversify revenue streams and launch an "everything app."
While Twitter will initially support only fiat payments, it also plans to add support for cryptocurrencies at a later date.
The Financial Times report made the price of the Dogecoin (DOGE) cryptocurrency surge by 7%. However, it has now pared some of its stellar gains.
A small team led by Twitter's director of product management, Esther Crawford, who has been appointed CEO of Twitter Payments, is mapping out the architecture for payments on the platform and creating a vault for storing and protecting user data.Twitter has also registered as a payments processor with the US Treasury and started applying for the state licenses required to launch the service.
The company aims to complete the regulatory checks within a year and then expand internationally. However, there are concerns about the challenges and costs of taking on new technology, complying with regulations, and gaining consumer trust.
The move into payments faces competition from other players such as Venmo, Cash App, and Zelle, as well as high levels of regulatory scrutiny.
In October, the price of Dogecoin soared after Musk finalized his Twitter deal. The meme coin's price has been very sensitive to Musk's actions and statements.
However, the price of the joke cryptocurrency took a hit in early November after Twitter reportedly scrapped its rumored plans to launch a crypto wallet under Musk's leadership.
For now, it remains to be seen whether Twitter will eventually add support for Dogecoin, but it seems like the controversial entrepreneur hasn't abandoned the cryptocurrency just yet.