In this article, Elon Musk’s social media platform X announced the launch of a digital wallet and peer-to-peer payments services provided by Visa. X partnered with Visa, the largest U.S. credit card network, to introduce the X Money Account, as revealed by CEO Linda Yaccarino on the platform. Visa’s collaboration will allow X users to transfer funds between traditional bank accounts and their digital wallet, facilitating instant peer-to-peer payments similar to Zelle or Venmo.
This move marks X’s initial step towards establishing a financial ecosystem for the social media platform, formerly known as Twitter before Musk’s acquisition in 2022. Musk, also the CEO of Tesla, viewed the $44 billion acquisition as a means to develop an all-encompassing “everything app,” with plans to enable users to manage their complete financial activities on the platform.
During Jack Dorsey’s tenure as Twitter’s head in 2021, the company introduced a bitcoin tipping feature enabling users to receive payments in the largest digital token by adding their crypto wallet addresses. However, obtaining recognition as a money service business in the U.S. involved navigating a complex regulatory environment.
For over a year, Musk has been pursuing licenses for X, with X Payments LLC being licensed in 41 states and registered with the Financial Crimes Enforcement Network (FinCEN), as stated on its website. The launch of the X Money service is anticipated in the first quarter, with potential collaborations with additional financial partners, according to a knowledgeable source.
One of the primary applications for X Money is to enable creators on the platform to accept payments and manage funds independently of external institutions, as disclosed by an anonymous source familiar with internal discussions. In a public meeting broadcast on Spaces in November 2022, Musk hinted to the platform’s advertisers that the forthcoming payments product might eventually offer banking features like a high-yield money market account.
Visa representatives declined to provide comments on the matter.
