Elon Musk’s ambitious vision to transform X into an “everything app” centers around integrated payment solutions designed to enhance user experience by offering a variety of transactional functionalities. This concept aims to create a platform that would serve billions of users, making everyday transactions seamless and more valuable. By establishing a comprehensive ecosystem within the app, Musk intends to revolutionize how users interact with digital payments and services, potentially positioning X as a leading utility in the tech landscape.

However, while the idea of creating a “Western version of WeChat” is intriguing, it appears Musk may be underestimating the challenges faced by Meta in this domain. Despite various attempts, Meta has struggled to launch a successful all-in-one platform, highlighting significant hurdles in user adoption and regulatory compliance. Musk may need to learn from Meta’s past ventures, which have consistently fallen short of achieving their ambitious goals, despite the theoretical promise of such integrations.

Meta’s journey began with the launch of Messenger Bots in 2016, which was envisioned as a gateway to a new realm of e-commerce, payments, and enhanced user engagement within the app. The goal was to create a multifunctional platform that would streamline various services, allowing users to shop and transact without leaving the app, thereby driving greater engagement and serving as a model for future innovations.

WeChat, the popular Chinese messaging app, served as a significant inspiration for Meta’s initiative, as they sought to replicate its success in the Western market. Meta’s high aspirations included the belief that they could surpass WeChat by offering superior user experiences that would integrate various services, including ride-sharing and accommodation booking, directly within their messaging platform.

“We need to leapfrog what they [WeChat] have done, to create better experiences than you would get with dedicated apps. When WeChat launched, there was no Airbnb, Uber or other fast-growing apps.”

Despite these ambitious plans, Meta’s attempt to establish a “WeChat for the West” ultimately failed to gain traction, leading them to abandon the project. This experience illustrates the complexities and unpredictability involved in creating a successful all-in-one platform, even for a company with extensive resources and influence.

Meta then shifted its focus to developing in-stream payment facilitation with the introduction of the Libra project in 2019, aiming to create a cryptocurrency that would enable seamless transactions within its platforms. This initiative was spearheaded by a former PayPal executive, reflecting Meta’s desire to become a major player in the digital payment space.

This move was intended to allow Meta to facilitate a wide range of transactions in a manner similar to Musk’s proposed framework for X. However, the initiative faced significant pushback and ultimately collapsed due to regulatory and political pressures, raising questions about the feasibility of such projects in the current landscape.

The demise of the Libra project is largely attributed to apprehensions from U.S. politicians regarding Meta’s growing influence in the payments sector. Recent insights from David Marcus, the former chief of the Libra project, shed light on the political challenges that stifled its launch, revealing a landscape fraught with skepticism toward big tech’s ambitions.

As Marcus articulated:

“By spring of 2021, we had addressed every last possible regulatory concern across financial crime, money laundering, consumer protection, reserve management, buffers, and so much more, and we were ready to launch. We had worked on a slow rollout of a limited pilot that some members of the Fed’s Board of Governors were supportive of. At last, Chair Jay Powell was ready to let us move forward in a limited way. The story, as I heard it, is that Jay Powell was told by Treasury Secretary Janet Yellen at one of their biweekly meetings that allowing this project to move forward was “political suicide,” and she would not have his back if he let it happen.”

Marcus highlighted that the termination of the project was not due to regulatory failures but rather a politically motivated decision aimed at curbing the influence of large technology companies in the financial sector. This revelation raises critical questions about the balance between innovation and regulation in the tech industry.

Regulators were evidently hesitant to allow Meta to expand into the payments space, raising the question of whether Elon Musk will encounter similar obstacles in his pursuit of an all-encompassing app.

With the potential re-election of Donald Trump, there could be a shift in political dynamics that may favor Musk’s ambitions. Musk’s government spending review project (DOGE) might eliminate certain regulatory roadblocks, potentially paving the way for a smoother path for his ventures.

However, the road ahead remains fraught with challenges. Although X has successfully applied for and obtained payment processor licenses in several U.S. states, it remains uncertain whether the platform will receive all necessary approvals to implement its comprehensive payment and transaction strategy effectively.

Despite seeming like a logical and innovative concept, the reality is that Musk will confront substantial obstacles in realizing his vision for X. The challenges are not solely technical; they also stem from regulatory scrutiny and public perception regarding the desire to shop and make payments within the app.

Ultimately, there is no clear precedent to suggest that Musk’s endeavor will succeed, nor is there an obvious pathway to launching such a complex platform. The combination of regulatory concerns and market dynamics creates a challenging environment for any tech giant aiming to innovate in the payments sector.

However, the potential political landscape shift with Trump’s return to office may inject new possibilities into Musk’s “everything app” aspirations, offering a glimmer of hope for those who believe in the transformative potential of such technology.