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 “everything app,” aiming to enable users to manage their entire 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). The launch of the X Money service is anticipated in the first quarter, with potential collaborations with additional financial partners, as per a knowledgeable source.
One of the primary applications for X Money is to empower 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.
