Twitter says it is exploring letting users receive payments from followers

Jack Dorsey, Twitter CEO. Photo: Mike Segar / Reuters
Share to friends
  • 71
    Shares

Twitter on Wednesday said it is exploring a feature that will allow users to receive tips, or digital payments, from their followers.

The feature would allow Twitter users to tip other users who provide exclusive content, in exchange for a cut of the gratuity, according to a report from Bloomberg.

The new feature will also include charging a fee to have access to Tweetdeck and charging a fee for advanced user feature like “undo send.”

TweetDeck is a popular alternative to the main Twitter website and mobile app with a dashboard that allows users to efficiently manage multiple accounts. The service is primarily targeted at professional creators on the site.

READ ALSO  Robinhood raises another $2.4B barely days after receiving $1 billion from investors

Twitter’s Chief Executive Jack Dorsey said on Wednesday the feature would help the company earn more money from its 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,” Dorsey said during virtual Goldman Sachs Technology and Internet Conference.

Twitter, which currently generates income primarily from advertising, expects that the user tipping and content subscription features would help it diversify revenue.

The Social Media company has grown at a slower rate compared to competitors such as Facebook and Snap Inc, which is among the reasons why it is exploring various ways to diversify and reduce dependence on advertising.

READ ALSO  Google withdraws thousands of job offers to contractors and temporary workers

Ned Segal, the company’s Chief Finance Officer said that a subscription option of some kind would offer sales ‘durability,’ and that recurring revenue is more consistent than advertising spending. He also noted that Twitter was not only “very, very early” in exploring a subscription service, but also planned to be picky about how it goes forward.

We have a really high bar for when we would ask consumers to pay for aspects of Twitter,” Segal said.

Last month, Twitter bought newsletter startup Revue. The company hopes Revue will attract users wanting to create long-form content.