Unveiling My Journey in Global Payment Solutions

As a banking and payments specialist, I have always aimed high in my career. However, achieving a billion-dollar deal seemed like a distant dream. My specialization in cross-border transactions and navigating complex regulatory frameworks has been the cornerstone of my journey. I’m excited to share how I transformed this dream into a reality.

The First Billion-Dollar Breakthrough

In late 2022, an extraordinary opportunity came my way — a deal worth an astonishing $4.4 billion. This wasn’t just any deal; it was a milestone in my career as a payment consultant, especially in the realm of banking and cross-border payments. Prior to this, my experience included facilitating transactions ranging from $100,000 to $3 million per month. But a billion-dollar deal was unprecedented for me.

The process was arduous, spanning nine months of hard work, learning, patience, and overcoming anxiety. The deal’s complexity required a unique blend of innovative solutions to meet the client’s specific needs. But eventually, the persistence paid off — the client and the solution provider successfully closed the deal, set to process over $4.4 billion annually.

Overcoming Mental Barriers

The biggest challenge in this journey was overcoming the mental block associated with such high numbers. The realization that a billion-dollar deal is not fundamentally different from smaller transactions was a game changer. It’s about scaling your mindset and approach to meet larger goals.

Continuing the Momentum

Buoyed by the success of the first deal, 2023 brought another opportunity — a deal worth $6.0 billion per year. Closing this second billion-dollar transaction took about three months, a testament to the growing confidence and expertise gained from the first experience.

Looking Ahead

Now, in late 2023, I’m on the cusp of closing yet another billion-dollar deal. While the outcome is still uncertain, the journey itself is a testament to the power of ambition and belief in one’s abilities.

Conclusion

My journey illustrates that with determination and the right expertise, particularly in banking and payments, achieving seemingly impossible goals is within reach. The world of high-stake deals is not just about numbers, but also about understanding and navigating complex needs with tailored solutions. As I look forward to more such achievements, I hope my story inspires others to set their sights high and pursue their dreams, no matter how daunting they may seem.

All the best in your endeavors!

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

Navigating the Billion-Dollar Wave was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

and Lessons from Facebook’s Missteps

Here is a long thread on Twitter’s recent grant of their first money transmitter license and what I think would be happening.

Twitter’s recent acquisition of a money transmitter license has sparked discussions about its entry into the payments industry.

In this thread, we’ll explore the prospects of Twitter as a payment platform, compare it with other major players like Facebook, Apple, and WhatsApp, and discuss the importance of regulatory approvals for global expansion.

Additionally, we’ll examine the mistakes made by David Marcus, who was involved in Facebook’s failed attempts to launch a payment system.

Background on Tech Giants and Payments:

• Facebook’s misstep: Facebook’s attempt to launch its own currency, Libra, and its complicated approach to payments have hindered its success in the field.
• Microsoft briefly pursued money transmitter licenses but later abandoned the idea.
• Amazon’s payment system is primarily focused on its ecosystem and lacks international peer-to-peer capabilities.
• Apple has its Apple Pay system, but its reach is limited to its ecosystem.
• Samsung and Google also made efforts with Samsung Pay and Google Pay, respectively, but faced various restrictions and licensing issues.

Twitter’s opportunity: With a simpler and more user-friendly approach, Twitter has the potential to thrive as a payment platform.

David Marcus and Facebook’s Mistakes:

• David Marcus’s role: David Marcus, a key figure in Facebook’s payment endeavors, made critical errors in their strategy.
• Overcomplicating the system: Instead of starting with a basic payment system, Marcus and his team attempted to create a complex ecosystem with their own digital currency.
• Unrealistic goals: Facebook envisioned a utopian scenario where multiple currencies and countries would embrace their Libra coin, but this idealistic vision ultimately backfired.

Twitter’s Unique Opportunity:

• A simpler approach: Twitter is expected to offer a straightforward payment system, starting with a Twitter wallet where users can load funds and exchange them for various purposes.
• Potential use cases: Users could pay a small amount for tweets, articles, or specialized content, fostering a vibrant payment ecosystem within the platform.
• While WhatsApp is widely used for communication globally, its foray into payments has not been as successful due to complex strategies and mistakes. I really hope Twitter doesn’t make the same mistakes as WhatsApp did.

Twitter’s Progressive Approach:

• Gradual adoption: Twitter is unlikely to immediately embrace cryptocurrencies, opting for a step-by-step implementation strategy.
• Peer-to-peer transactions: The platform will likely enable users to exchange balances and facilitate direct transactions among Twitter users.

Importance of Global Expansion:

• Regulatory approvals: Obtaining approval in the United States is just the first step for Twitter; filing for licenses in other countries is essential for global expansion.
• Beyond an America-centric system: Filing in countries worldwide, such as Canada, the UK, EU, Singapore, Hong Kong, UAE, South Africa, Brazil, and Argentina, will pave the way for Twitter’s success on an international scale.

Potential Impact and Competition:

• Twitter’s opportunity: If executed effectively, Twitter could become a dominant player in the payments industry.
• The danger for Facebook: Should Twitter stumble, it could provide an opening for Facebook’s WhatsApp to assert its dominance.
• Simplified payments approach: While other contenders like specific crypto players may arise, the key lies in starting with a streamlined regulated payment system rather than overly complex solutions.

Twitter’s acquisition of a money transmitter license presents an exciting opportunity for the company to enter the payments industry. A lot of folks are excited by this. By learning from Facebook’s mistakes, especially those associated with David Marcus, Twitter can focus on a simplified payment system that caters to user needs. Global expansion and regulatory compliance will be crucial for Twitter’s success. It remains to be seen how Twitter will navigate these challenges and shape the future of payments while avoiding the pitfalls encountered by its competitors.

The true potential of Twitter lies in its ability to facilitate international transactions. It has the capability to enable small-value transfers to your Twitter wallets from anywhere in the world.

It’s crucial to recognize that there are over 220 countries and territories worldwide, and connecting them is not just about creating a platform for sharing content but also about enabling seamless payments. Many, including competitors, are closely observing what steps Elon Musk takes next in this regard.

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

Twitter’s Potential in the Payments Industry was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

The Money Transfer Bible

Starting a money transfer business can be a daunting task. There are many regulations, licenses, and requirements to navigate, and the process can vary from country to country. But fear not, because we have put together one of the most extensive resources online for the money transfer industry: “How to Start a Money Transfer Business?”

This comprehensive guide covers everything you would need to start a money transfer business, including the basics of the industry, legal requirements and regulations, choosing the right partners, marketing and customer acquisition, and managing daily operations and risks. The guide is continually updated to ensure that it remains a current and relevant source of information for anyone interested in starting a money transfer business.

One of the unique aspects of this guide is that it covers not only the United States, but also many other countries around the world. We understand that a money transfer license can go by many names in different countries, such as bureau de change, remittance license, money services organization license, money transfer operator license, or payment institution license, among others. Therefore, we have included information on the licenses required for each country, as well as the relevant regulatory bodies and the application process.

To make it even easier to access this valuable information, we have created a separate domain called https://howtostartamoneytransferbusiness.com. This website is dedicated solely to providing information on starting a money transfer business and is designed to be a one-stop-shop for everything you need to know.

Our goal with “How to Start a Money Transfer Business?” is to become the de facto source for all things related to starting a money transfer business. We believe that this guide will not only be an authoritative source of information but will also serve as a valuable tool for entrepreneurs and investors looking to enter the money transfer industry.

In conclusion, we have created one of the most comprehensive resources available online for anyone looking to start a money transfer business. With detailed information on the industry, legal requirements, marketing, and customer acquisition, and managing daily operations and risks, we are confident that this guide will be an invaluable resource for anyone interested in starting a money transfer business.

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

How to Start a Money Transfer Business was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Comparing results after a decade.

In 2011, this question was asked on Quora, and I wrote my answer as follows:

This is an excellent question and there are many companies who believe they are shaping this answer (predominantly, SWIFT, Visa, Mastercard, WesternUnion, PayPal, and a whole lot of mobile companies).

Very important note to the above, is an external player like say Facebook that can be a huge disruption in the money space, should it enter with a cunning plan, that is pragmatic, worldwide and affordable.

Though it is very difficult to predict how the payment system will shape out in 5 years, especially between countries, it will most likely have the following touch points incorporated into it [I do want to stress, this is strictly IMHO — feel free to differ]:

• TRANSACTION & SETTLEMENT TIMES: The biggest change you would see is the ability to make the end-to-end transaction as near to real-time as possible for the two parties between which money is being remitted. The second factor is the near real-time settlement between the two financial institutions that were doing the remittance (i.e. Sender’s Bank and Beneficiary’s Bank).
• ANTI-MONEY LAUNDERING: Money laundering would be more difficult (as more correlated reporting and systems integration of various financial institutions will make it so)
• KNOW YOUR CUSTOMER: The KYC would be inherently more advance. By more advance, I imply that the KYC system would be able to tap into periphery system to verify what as already been submitted. Eg: A credit card KYC may query your bank account for address verification / name match.
• MOBILE: Money would be more mobile than it is today, and you guessed it — it would reside in/on your phone. Your phone would be in some crude sense a financial instrument. Expect to see a sharp rise in QR Codes. No more lengthy forms to fill out for money transfer/payments.
• SUSPICIOUS ACTIVITY REPORTING: SAR checks are currently performed in the US and in different countries (under various different nomenclature / taxonomy). To nib the money laundering bud, and to better have a more accurate visibility on suspicious transactions, it is my belief that SAR checks (albeit performed) would most likely also be cross-referenced across the border.
• FINANCIAL ROUTERS/ROUTING: More companies will prop up providing financial routing services. Take money from your PayPal and credit it to your ATM card. Take money from ATM card to credit to your Visa card, Take money from your Bank and credit the money to Micro-Wallet payment company. For example, if you want to transfer money from your Prepaid VISA card to PayPal (and they are not connected), you will be able to do so. Or if you are travelling overseas and you buy a Deutsche Telekom SIM card (that does payments as well) and you want to transfer $50 to it from your Bank, you will be able to do so.
• MONEY EXCHANGE COMPANIES: You traditional money exchange companies with walk-in customers will eventually consolidate and business for walk-in clients will diminish drastically.
• INTERNATIONAL PAYMENTS (CROSS-BORDER): International payments would become much more easier (as KYC, AML check would be a whole lot better). The Person-to-Person element would become more common and speedier, economical and reliable.
• EXCHANGE RATE: You would get a whole lot more competitive exchange rate on your international transactions (I believe less than 1% exchange parity between Internbank and Open-Market rate).
• MICRO-PAYMENTS: Yes, the world will finally have a micropayment setup. One that allows micro-payments in multiple currencies.
• VIRTUAL CURRENCIES / CREDITS: More and more companies will start to offer exchange and settlement of virtual currencies and credits that may be specific to a social network, gaming network, etc. Even Bitcoins. This could also be part and parcel of the Financial Routers.

I pasted the same answer in ChapGPT4 and did not say anything else, just that I wrote this answer in 2011, and this is what ChatGPT has to write back:

You provided an insightful and comprehensive answer to the question about the future of the money transfer industry back in 2011. Now, more than a decade later, we can evaluate how accurate your predictions were and what has actually transpired in the industry since then.

1. TRANSACTION & SETTLEMENT TIMES: Your prediction about near real-time transactions has largely come true, with many services now offering instant or near-instant transfers, such as Zelle, Venmo, and the RTP (Real-Time Payments) system in the US.
2. ANTI-MONEY LAUNDERING: AML regulations and enforcement have indeed become more stringent, with increased cooperation between financial institutions and regulators.
3. KNOW YOUR CUSTOMER: Advances in technology have improved KYC processes, with digital identity verification and biometrics being used by many financial institutions to confirm customer identities.
4. MOBILE: The use of mobile phones as financial instruments has grown exponentially, with mobile wallets and payment apps like Apple Pay, Google Pay, and Samsung Pay becoming commonplace.
5. SUSPICIOUS ACTIVITY REPORTING: Cross-border cooperation and information sharing for SARs have improved, making it easier for financial institutions and regulators to track and prevent suspicious transactions.
6. FINANCIAL ROUTERS/ROUTING: The emergence of fintech companies has indeed led to the development of financial routing services, offering increased flexibility in moving funds between various platforms and accounts.
7. MONEY EXCHANGE COMPANIES: Traditional money exchange companies have faced increased competition from digital-first services like TransferWise (now Wise) and Revolut, leading to consolidation and a shift in focus to online platforms.
8. INTERNATIONAL PAYMENTS (CROSS-BORDER): Cross-border transactions have become more accessible and affordable, with services like Wise and Remitly offering faster and cheaper international money transfers.
9. EXCHANGE RATE: Your prediction of more competitive exchange rates is accurate, as many digital-first services now offer exchange rates close to the interbank rate with minimal fees.
10. MICRO-PAYMENTS: The rise of digital wallets and mobile payment platforms has facilitated the growth of micro-payment solutions, enabling easier transactions for small amounts of money.
11. VIRTUAL CURRENCIES / CREDITS: The rise of cryptocurrencies like Bitcoin and Ethereum, along with the growing interest in digital assets and NFTs, has led to increased adoption of virtual currencies. Many platforms now offer exchange and settlement services for these assets.

Overall, your predictions from 2011 were remarkably accurate and have captured the significant developments and trends that have shaped the money transfer industry in the past decade.

… Well, what do you think? Agree or not?

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

How will money transferring between countries look in five years? was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

How MSBs are leveraging the power of USDC and Circle for cross-border payments to their counterparties.

As cross-border payments continue to gain popularity, businesses are constantly looking for faster, more secure, and cost-effective methods to conduct transactions. In my recent walk-through videos, I discussed how US Money Service Businesses (MSBs) with the requisite money transmitter licenses can leverage Circle and their stablecoin USDC for these purposes. With Circle acting as a correspondent bank, using USDC has proven to be a promising solution for reducing counter-party risk and facilitating multi-MSB payouts. Watch on to learn more about the benefits of Circle and USDC for MSBs.

These videos reflect the current state of affairs in the payments industry as licensed players seek to bridge the gap between the fiat and crypto worlds. By leveraging Circle and USDC, MSBs can facilitate faster and more secure payments while ensuring that all compliance and regulatory checks remain in place. Watch my videos to learn more about how Circle and USDC can help you navigate the evolving landscape of cross-border payments.

How Money Transfer Operators are using Circle and USDC

How MSBs are using Circle and USDC in International Money Transfer (Remittances)

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

Using USDC for Cross-Border Payments was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Summary table for understanding the US Money Transmitter Licensing Process.

A money transmitter license is a type of license issued by a state or federal government that allows a business to engage in the transmission of money or monetary value. This can include activities such as money transfers, currency exchange, and check cashing.

In the United States, a money transmitter license is typically required at the state level, with each state having its own set of requirements and regulations. Some states may also require businesses to obtain a license from the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of Treasury.

The license is used by businesses such as money transfer companies, payment processors, and digital currency exchanges. These businesses need to comply with the regulations and laws established by the state and federal government to operate legally in the United States.

Because everyone keeps asking us tons of questions on the MTL, we decided to make a very detailed summary table highlighting the various aspects of a Money Transmitter License.

US Money Transmitter License: Summary Table

It’s worth noting that some countries might have different regulations regarding money transmitter licenses, so the specifics may vary. However, in general, a money transmitter license is a necessary requirement for any business that handles money transfers and monetary value transmissions.

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

Money Transmitter License was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

What is happening in the parallel market?

I recently did a series of small podcasts highlighting what was going on in the Nigerian parallel market. For the 1st time in Nigeria, the parallel market rate for the Nigerian Naira against the US Dollar was 100% more than the official rate.

Nigeria Economic Background

Nigeria is a country located in West Africa. Africa's largest economy has a diverse range of industries, including oil and gas, telecommunications, banking, and agriculture. The Nigerian economy has experienced various ups and downs over the years, with periods of strong growth followed by economic downturns.

During the 1960s and 1970s, Nigeria experienced economic growth, fueled partly by the country’s oil and gas industry. However, this period was also marked by political instability and corruption, hindering economic development. In the 1980s, Nigeria was hit hard by the global oil crisis, leading to a sharp decline in its GDP and worsening its fragile political situation.

In the 1990s, Nigeria tried to diversify its economy and improve its infrastructure. However, these efforts were stymied by continued political instability and corruption. In the early 2000s, the country was hit by economic shocks, including a devaluation of its currency and a sharp drop in oil prices. This led to a period of economic stagnation and high inflation.

Nigeria has made some progress in improving its economic situation in recent years. The government has implemented several economic reforms to reduce corruption and improve the country’s business environment. Despite these efforts, the Nigerian economy faces challenges, including high unemployment and inequality.

When the Naira crossed 900

Why the parallel market exists?

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

Nigerian Naira Crisis. was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

IS Bank in Türkiye is one of the banks that I use. Their mobile app has something I have not witnessed with any other app I may have used. I am sure it exists, but I haven’t seen it with anyone else.

It is the welcome screen depending on the time of day it is, and also on holidays & seasons.

Something as simple as this welcome screen makes me happy.

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

Mobile Banking App: Welcome Screen was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

A four-part series of curated documentaries to understand banking, money, and economics.

Understanding money and the economy. Some excellent documentaries to watch that will excel in your understanding of how the world economy works.

This is Part 2 of a Four Part Series.

Last week I published a post on the documentaries to watch on banking, money and payments. You can read that article here.

This Part II is for folks who want to be more educated (informed?) about the world of banking and finance. The economy is not an easy concept to grasp, but at least having an understanding can undoubtedly help navigate both testing and opportune times.

The BBC Documentary Series: Masters of Money, is a must-watch. Starting with Maynard Keynes. You’re in the Keynesian economics era.

The brilliant mind of Friedrich Hayek…

Karl Marx? Yes, you read that right; if you don’t know Marx, I’m afraid you missed out.

Once you’ve seen Masters of Money, it is time to see an excellent five-part series by Niall Ferguson called “The Ascent of Money.”

Episode 1 — Dreams of Avarice:

Episode 2 — Human Bondage:

Episode 3 — Blowing Bubbles:

Episode 4 — Risky Business:

Episode 5 — Safe as Houses:

Episode 6 — Chimerica:

If you are serious about learning, the next series is the BEST thing I have personally watched and learned from. If you ‘really’ want to understand Economics, and delve into it a little more than tipping your toes, then the “Crash Course: Economics” is the best thing.

Fair warning — it is long, with 36 videos in the playlist. But you can walk away learning a LOT.

Everything I know about Economics comes from this video playlist.

Crash Course: Economics (Playlist)

How is Money Created?

Time to bring Ray Dalio back….

Principles for Dealing with the Changing World Order by Ray Dalio:

Now it is time to introduce a person who just makes so much sense. Dr. Robert Reich.

Class in Session with Robert Reich (a MUST watch, series of 5 lectures):

Another great session by Dr. Robert Reich is a 14-Class video series called:

Wealth & Poverty:

Second last… is Real Value | Economics Documentary with Dan Ariely | Sustainability | Social Entrepreneurship

And lastly, one of my favourite talks, I must have watched it over 30+ times:

Jeremy Rifkin’s: The Third Industrial Revolution: A Radical New Sharing Economy

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

Money & Banking Documentaries was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Framework for monetizing payments on the world’s largest microblogging network.

A friend asked me a question the other day: ‘If Twitter were to monetize itself using payments, what would be the natural method of going forward?’

Interesting question. One that I am sure a lot of people So here’s my take on that.

Twitter is a vast platform. It has the ability to send micro messages, which is fantastic; it has Spaces where you can host or join live audio conversations and discussions. The platform is used by hundreds of millions of people a day.

I think it’s only natural that Twitter will look at P2P payments (person-to-person payments) or Twitter account-to-Twitter account payments on the platform as time progresses. I think it will be the next big thing.

Fending off Competition

Twitter is in a tight race with many incumbents. The prominent ones are Facebook, WhatsApp, Instagram, Youtube, and TikTok. There is the occasional threat from blockchain-based decentralized platforms like Mastadon, etc., but they have yet to be a noticeable blip on the social media radar.

Tipping on Social Media

Circa 2005, Second Life had something called a tip jar where you’d be able to tip other users and their avatars. For instance, if there was an avatar in a bar and they were serving you drinks, you could tip them by just pointing at the tip jar and putting some money in it.

To tip within Second Life, you had to buy Linden Dollars (or L$ as they were denoted), the currency used in Second Life. Tipping became so common in Second Life that it became a way of appreciating other people. Tipping is how you were rewarded if you took a taxi ride or someone did some construction for you or sold you some skins for your avatar.

For example, when it launched, Quora had something called Quora Credits. You earned Quora credits for every upvote you got, which was the currency within the Quora system. On Reddit, you have Reddit coins, and those can be purchased and gifted to others users for their content. You can give gold, silver, and many other coins to show each other your appreciation.

Introducing Twitter Micro Payments

Today, on Twitter, you can like or retweet a tweet at best.

But what if someone’s putting out a valuable content thread? You and I should be able to tip them on what we think is good content.

I should be able to give them 20 cents or 50 cents or $. The goal is that Twitter should look at small value payments or micropayments.

Micropayment could be as small as a 10th of a cent and as high as $10, $20, or even $50 at maximum. With this, Twitter can start an ecosystem where content, information, or opinion monetization can start. You would have the ability to tip other Twitter users. For example, someone who publishes a nice thread through which you’ve learned. Whether you are based in Tanzania, Guatemala, or Vietnam, you could send the equivalent of maybe 1/10th of a cent or 1/20th of a cent, or 1/5th of a cent to the person you’re tipping.

Twitter does have a tipping/monetization program, but it is super clunky. It only works with Bitcoin or Ethereum; all it does is copy the wallet address and expect you to make the payment outside the network.

How Would Micro-Payments Work in the Twitter Ecosystem?

So, how would it work? Twitter would first need to get licenses in certain jurisdictions, the United States, Canada, the EU (the EEA), the UK, Australia, New Zealand, Singapore, Hong Kong, Japan, South Korea, the GCC, etc.

In my opinion, Twitter should start with Fiat, not crypto. Why? Because it is the most straightforward and lowest-hanging fruit with the least amount of objections in terms of licensing, regulations, etc.

Some pundits are saying Twitter should introduce DOGE in their payments ecosystem. I disagree with that because the regulatory and compliance hurdles are immense when you introduce cryptocurrency, especially on the first go, and that too on one of the world’s largest social media systems (Remember what happened to Facebook and their Libra project?).

Why would you want to skip eight steps, go for crypto immediately, and invite unwanted scrutiny?

Go the Fiat route. It’s already there; it is what everyone understands; it transcends all boundaries, is compliant, and, most importantly, is easy to implement. You want to start with the simplest, the lowest-hanging fruit that would cause the least amount of objection, which in this case would be the Fiat.

It’s my first recommended step. I think Twitter would and should introduce small value and micropayments in their ecosystem.

The next step would be to onboard users in the payment ecosystem. For example, how do you get a customer on board in the United States? Well, if you have a Twitter account, you can verify it through a blue tick. A blue tick or a verified account means you’ve been KYC’ed based on your bank account that is also in your name, you’ve provided some form of identification, etc. You can use that same KYC’ed account, debit card, or bank account to load funds onto the Twitter Wallet.

So now, every verified Twitter account also becomes a Twitter wallet, and based on the amount of KYC information you supplied, that is the limit of your wallet.

Now that you have already been KYC’ed by the banking institution with which you have an account, Twitter is trusting the system that the KYC’ed account as used by a Visa, MasterCard, or your bank account is good enough for themselves to be able to provide you and a wallet on their system.

This can be done in the US, the EEA, the UK, and other countries that can also follow suit. For example, if you’re a user from Greece. You could sign up with Twitter Europe, open an account, and use a Greece-issued bank card to load funds with a limit. The limits could be in slabs. The 90-day limit could be $100, the 30-day limit could be $25, the 60-day limit could be $50, and so on and so forth. This allows Twitter to control the amount of money flowing through KYC’ed bank accounts and debit cards into their payment ecosystem, keeping them safe from terrorism financing and money laundering threats.

Content creators will suddenly have a new revenue stream in all shapes or forms that they have not seen before.

They will not have to rely on third-party payment systems or offload the payment mechanics outside the Twitter ecosystem. It’ll be natively built-in. You can send money to any Twitter account you wish.

Regarding the cost of moving funds from, let’s say, Twitter account A to Twitter account B, it’s simply an internal transfer, a simple ledger entry. There’s no bank involved as such, it’s just a balance entry, a record of truth entry. So as far as Twitter itself is concerned, the balances move from Pat to John, or from Mary to Ali, and so forth. So this is a huge, huge benefit because it brings a lot of revenue that will stay in the Twitter ecosystem. And I think this would be the right approach.

With additional client balances and the sheer size of Twitter, it can eventually offer other financial services. Think of a Twitter-branded VISA/Mastercard being able to issue virtual cards, etc.

Elon Musk is looking in the right direction regarding the platform's monetization. Let's see how it pans out in the coming months.

In my opinion, this would be the most natural progression because it would allow, for the first time, a very large-scale social media presence on the Internet, which they already do but with the added functionality of payments.

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.

Twitter Payments was originally published in Faisal Khan LLC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.