Elon Musk's X Launches Invite-Only Financial Service X Money
The new service offers users a Visa debit card, real-time money transfers, and a 6% yield on deposits for paying subscribers.
X, formerly known as Twitter, has launched an invite-only financial service called X Money, enabling users to send funds to one another. The platform is leveraging technology and services from Cross River Bank to offer its banking-like features.
Currently, access to X Money is limited to paying subscribers of the X platform. Users who receive an invitation will be provided with an "X"-branded Visa debit card. These cards are usable at any ATM.
To incentivize adoption, X Money is offering a 6% annual yield on deposits and 3% cashback on eligible purchases. To qualify for the 6% yield, customers must maintain a minimum deposit of $1,000. Additionally, users must be subscribed to X's premium services, which start at $8 per month. A deposit of at least $1,600 would be required to cover both the premium service cost and meet the minimum deposit for the yield.
Elon Musk has previously expressed a vision for X to become an "everything app" that incorporates financial services. Musk has a history in the financial sector, having co-founded X.com, an early online bank that eventually merged into what is now PayPal.
X Money enters a competitive landscape populated by established peer-to-peer payment services such as PayPal's Venmo, Zelle, and Cash App.