Elon Musk’s new payment platform includes instant transfers and a Visa debit card as it begins a limited rollout.
New York: Elon Musk’s social media platform X has launched X Money, its long-awaited digital payments service, marking the first step toward Musk’s vision of transforming X into an “everything app.”
The service allows eligible users to send money instantly, earn interest on deposits, and access funds through an X-branded Visa debit card. However, the initial rollout is limited to invite-only users.
What Is X Money?
Despite its banking features, X Money is not a bank.
Instead, the platform operates through Cross River Bank, which provides the regulated banking infrastructure behind the service. This model is common among fintech companies, allowing them to offer financial products without obtaining their own banking licence.
Users can transfer money to other X users in real time, while their funds are held through Cross River Bank’s regulated banking platform.
Invite-Only Launch for Premium Subscribers
The service is currently available only to invited users who subscribe to X Premium.
Eligible customers receive an X-branded Visa debit card, which can be used anywhere Visa is accepted, including ATMs.
X has not announced when the service will become available to all users.
Interest and Cashback Rewards
To encourage adoption, X Money offers several financial incentives.
Customers can earn 6% annual yield on qualifying deposits and receive 3% cashback on eligible purchases.
However, the highest interest rate comes with conditions.
Users must deposit at least $1,000 into their account and maintain an active X Premium subscription, which starts at $8 per month.
Based on current pricing, maintaining the subscription while earning the advertised yield would require deposits of roughly $1,600 to offset the annual membership cost.
Musk’s ‘Everything App’ Vision
The launch represents another milestone in Elon Musk’s long-term ambition to transform X into a platform that combines social networking, payments, shopping, entertainment, and financial services.
The idea is not new for Musk.
Before Tesla and SpaceX, he co-founded X.com in 1999, one of the earliest online financial services companies. X.com later merged with Confinity, the company behind PayPal, eventually becoming the online payments giant known today.
With X Money, Musk is returning to the financial technology sector more than two decades later.
Entering a Competitive Payments Market
X Money enters a crowded digital payments industry dominated by established services such as Venmo, Zelle, and Cash App in the United States.
While its integration into X gives it access to millions of existing users, the platform will need to convince consumers to move their financial activity away from services they already use.
The limited, invite-only rollout suggests X is taking a phased approach as it tests the service before a broader launch.
AP
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Source: Gulf News
