Twitter Inks Crypto Payment Deal for Creators

Twitter (TWTR) has tapped payments processor Stripe to help it offer its creators an option to receive their earnings in cryptocurrencies. TWTR stock rose about 4% to $48.93 on April 22.

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Twitter has introduced programs for creators on its platform to monetize their fans. Its Ticketed Spaces program lets creators host live audio sessions that their fans can join by purchasing tickets that can cost as low as $1 or as high as $999. The Super Follows program lets creators offer exclusive content to their fans on a subscription basis. The plans cost between $2.99 and $9.99 per month.

Creators to Get Paid in USDC

There are people who may want to participate in Twitter’s creator rewards program, but they do not hold the U.S. dollar or prefer other payment methods. For them, Twitter has teamed up with Stripe to provide them with an option to pay with cryptocurrency. In the pilot program, Twitter and Stripe are initially offering the option to pay with U.S. dollar-pegged stablecoin USDC. They plan to support additional cryptocurrencies in the future.

Twitter Takes a Cut of Creators’ Earnings

Although the Ticketed Spaces and Super Follows programs are primarily intended to generate earnings for creators, they also make money for Twitter. For creators whose lifetime earnings are below $50,000, the company takes a 3% cut of their revenue. Once lifetime earnings exceed $50,000, Twitter’s share of the revenue rises to 20%.

Wall Street’s Take

The stock has a Hold consensus rating based on four Buys, 23 Holds, and three Sells. The average Twitter price target of $45.84 implies 6.3% downside potential from current levels.

News Sentiment

TipRanks data shows that the News Score for Twitter is currently Neutral based on 384 articles published over the past seven days. Notably, 54% of the articles have a Bullish Sentiment compared to a sector average of 63%, while 46% of the articles have a Bearish Sentiment compared to a sector average of 37%.

Key Takeaway for Investors

Since creators drive conversations on Twitter, helping them make money can encourage them to contribute more to the platform. Twitter’s primary advertising business can benefit from a livelier platform. Additionally, the creator monetization programs make extra money for Twitter and contribute to diversifying the company’s revenue sources.

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