WhatsApp might be the most popular chat platform, but it’s not exactly synonymous with privacy. While the Meta platform has added many layers of protection over the years, competing apps like Signal and Telegram have taken advantage of this to nibble away at its market share. Now Elon Musk has thrown his hat into the ring with the launch of XChat, a messaging feature unveiled earlier this month to push X into the territory of “private and secure communication”.
While X had a DM feature earlier, XChat is a complete overhaul of the existing system. According to Musk, XChat is built on a “whole new architecture” that incorporates what he describes as “Bitcoin-style encryption” to enhance privacy. He has also announced that his ambition is to transform X into an “everything” app that offers messaging, media and even dating. XChat is currently available to some paid X subscribers, as per TechCrunch.
Needless to say, brands and marketing firms are watching the space closely. “XChat isn’t trying to own transactions; it’s trying to own relationships first. The focus is on turning DMs into richer spaces for creators to connect with their audiences with features like vanish mode, or not needing a phone number,” remarks Julie Kriegshaber, co-founder & COO of SuperStuff.ai. The platform’s vision of blending content, creators and conversations could create fresh inventory, which could mean smarter placements for advertisers. However, Kriegshaber cautions that brand safety and clarity around content moderation remain critical.
But before XChat gets there, it has to grapple with category giants, WhatsApp and Telegram and become the default option for users. And that is no easy task, considering that WhatsApp has around 2.8 billion monthly active users around the world, and Telegram has around 1 billion global monthly active users. In comparison, X logs an average of 600 million monthly users currently.
For XChat to become a really dominant player in the private messaging space, it will need a cultural shift, especially in a market like ours where adoption can be a serious challenge, opines Danny Advani, head of business strategy, Dot Media. “In India, Instagram dominates direct messaging among GenZ users, Telegram is used for its privacy and WhatsApp is used like muscle memory and often for phone calls too.”
So is there space for a new app?
Building trust
Even when it was known as Twitter, the platform was seldom used for direct messaging. Users typically get on to X to share views and voice concerns to brands and public figures, but messaging is generally reserved for apps like WhatsApp and Telegram.
That said, Manish Solanki, COO & co-founder, TheSmallBigIdea, points out that XChat’s privacy-first approach could give it an edge when it comes to messaging. “Today’s users want the assurance that their data is not being mined. Features like allowing users to join without a phone number and deep integration within the X ecosystem signal a commitment to building trust in an era where concerns about data misuse are at an all-time high,” says Solanki.
According to Prabhu Ram, VP, Industry Research Group at CyberMedia Research, X’s highly engaged user base uniquely positions it to evolve into a super-app, much like China’s WeChat that has become an all-in-one platform largely used by Chinese citizens. XChat’s integration of “Bitcoin-style” encryption is likely to resonate strongly with users who are increasingly concerned about data protection. “This security-first approach is a foundational element that bolsters X’s broader super-app ambitions. If X can maintain user engagement throughout this transformation, it will be well-positioned to unlock significant monetisation opportunities across its ecosystem,” he says.
Last but not the least, changing people’s habits is more about hard work than Musk-esque bombast. As Rohit Sakunia, founder, ArtE Mediatech says, it’s not easy to shift chat platforms and that XChat will need to offer something that Meta has not been able to. It could consider combating issues like fake news to start with.