X Social Media Launches Bank-Like Payment Service

Elon Musk’s social media platform, X, which was previously known as Twitter, has introduced X Money, a new service that allows users to transfer money to each other. This is not a new bank itself, but rather a service that relies on Cross River Bank’s technology and banking services.

Launching new financial services often involves partnering with traditional banks due to the complexities and costs of establishing a new bank. X Money is currently in an invite-only phase and provides users with an X-branded Visa debit card accepted at any ATM.

The service permits real-time money transfers between X users, though access is currently limited to X’s paying members. To draw in customers, X Money offers a 6% yield on deposits and a 3% cashback on eligible purchases. A deposit of at least $1,000 is necessary to earn the yield, and customers must be subscribed to X’s premium services, which requires a minimum payment of $8 monthly. To cover this, an initial deposit of at least $1,600 is needed.

Elon Musk has previously expressed ambitions of transforming X into an “everything app” that would incorporate financial services. His background in financial services includes establishing one of the first online banks under the brand X.com, eventually evolving into PayPal.

The market for peer-to-peer financial services is competitive, with major players like PayPal’s Venmo, Zelle, and Cash App. X Money is entering this market with the hope of carving out its niche.