The news of the tie-in of Twitter and eToro has made a splash in the tech space, indicating Musk’s ambitions to create the “everything app”. In the retail trading industry, many were curious about the nuts and bolts of the deal, which can be meaningful for pretty much every major broker and provider. The terms were famously not disclosed, but Finance Magnates sat down with eToro’s UK Managing Director Dan Moczulski, to get a glimpse into its facets.
Asked whether any user data could be shared between the two platforms, Mr Moczulski stated, “No, nothing. It’s a marketing deal at the moment.”
And, on the subject of KYC checks, he explained: “What’s not happening is, you click on Twitter, on $APPL, and suddenly, if you’re not an eToro user, you get the ability to buy or sell Apple.
“Actually, you land on eToro, you see Apple prices, you see an Apple chart, but if you want to become an eToro client, you have to go through KYC the same as anybody else.”
Asked whether the integration was more similar to the relationship between an advertiser (eToro) and a media platform (Twitter), or more like an arrangement by which Twitter can take a share of the revenue from eToro, Moczulski replied, “It’s most definitely the former,” and confirmed that this kind of arrangement is straightforward with regulators, going on to explain, with regard to how the partnership might develop in the future.
“This is eToro using Twitter’s infrastructure to market the services of eToro. Any other kind of speculation on the future motivations of Twitter is for them to decide.
“But who knows? Obviously, there’s a line of communication that’s been developed now, but certainly, at the moment, it’s for us to help Twitter users find more information about stuff that they might be interested in.”
Twitter just scored a deal with eToro that takes the social media firm a little deeper into the world of finance. https://t.co/6kePDH7e2r
— FORTUNE (@FortuneMagazine) April 13, 2023
There has been speculation about the possibility of Elon Musk, at some point, moving to make an investment or purchase offer to eToro, to build out his proposed everything app, but Mr Moczulski made clear that this is simply guesswork on the part of commentators.
“[The partnership] has struck a chord with people who are making those kinds of predictions, but at the moment, these are just predictions. It’s the early days of a marketing agreement, but I think…