Twitter mulls over entering into digital payment space with follower-based model

Taking cue from changing market dynamics, Twitter is now mulling on permitting Twitter users to take tips or digital payments only from their followers.

On Wednesday, Twitter Chief Executive Jack Dorsey said the company is exploring the option to allow its users to receive tips, or digital payments, from their followers.

He added that this will help the company to increase its revenue stream by engaging with Twitter’s 192 million daily users.

”I think the first thing we want to focus on is that economic incentive to people who are contributing to Twitter,” he said at the virtual Goldman Sachs Technology and Internet Conference, quoted a news report.

At present, the company makes money by selling advertising slots on Twitter. But with new features like user tipping and content subscriptions, the company is looking to diversify its revenue. The company said on Tuesday, during an earnings call with analysts, that it did not expect subscriptions to be meaningful to the company’s revenue until next year.

Last month, Twitter bought newsletter startup Revue. Through this, the social media platform plans to attract users wanting to create long-form content.

Social media platforms like Facebook had entered into the payment space by Whatsapp. As Twitter fails to have such a platform, this could be its way to enter the digital payment space.

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Free Press Journal