Elon Musk’s X, formerly known as Twitter, has officially unveiled its highly anticipated digital wallet and payments platform, X Money. The service is designed to facilitate seamless peer-to-peer (P2P) transactions, allowing users to send and receive money directly.
The launch of X Money marks a major step towards transforming the social media giant into a comprehensive digital ecosystem, mirroring China’s WeChat.
According to the announcement made on Tuesday, X Money will enable users to link their bank accounts to a digital wallet, providing the ability to transfer funds to another X Money wallet on the platform.
In an effort to compete with existing P2P payment apps such as Cash App, Venmo, and Zelle, X Money is partnering with Visa, leveraging Visa Direct to enable instant transactions.
During the launch, X CEO Linda Yaccarino shared key details about the service, confirming that support for X Money accounts will roll out later this year. The partnership with Visa allows users to instantly transfer funds into their ‘X Wallet’ via Visa Direct, she added. These funds can then be used for P2P payments within the X platform.
In addition to loading funds into the digital wallet, users will also have the option to link their debit cards to their X Money account for P2P transactions. This functionality positions X Money as a direct competitor to several existing mobile payment services in the US, such as Apple Pay Cash, Venmo, and Cash App.
Yaccarino emphasized that users will have the flexibility to transfer funds from their X Wallet back to their bank accounts. However, the company has yet to announce an exact launch date for X Money in the US.
Meanwhile, Visa confirmed that X Money users in the US will be able to conduct real-time transfers using a linked debit card, further enhancing the platform’s efficiency and ease of use.
Since acquiring Twitter and rebranding it to X, Elon Musk has been vocal about his ambition to transform the platform into an ‘everything app’—one that integrates multiple functionalities, including payments, shopping, messaging, and financial services.
X has been diligently working on incorporating digital payment solutions over the past two years. In December 2023, Musk revealed in a conversation with ARK Invest's Cathie Wood that the platform required regulatory approvals from various US states before it could begin operations as a licensed money transmitter.
As of Wednesday, X has successfully obtained money transmitter licenses from 41 US states. Additionally, X Payments LLC is registered as a Money Services Business (MSB) with the US Financial Crimes Enforcement Network (FinCEN), indicating the company’s commitment to regulatory compliance.
The launch of X Money is a significant milestone for Musk, as it revives his long-standing vision of creating a digital payments platform. Notably, PayPal—a major player in the digital payments industry—originated from the merger of Confinity and Musk’s online banking startup, X.com, in 2000. With the unveiling of X Money, Musk is once again entering the competitive payments landscape, potentially positioning X as a formidable challenger to PayPal and other fintech giants.
While X Money is currently focused on P2P payments, there is speculation that the service could eventually expand to business payments, e-commerce transactions, and even cryptocurrency integration.
The launch of X Money marks a significant step in Elon Musk’s quest to turn X into a multi-functional platform. By integrating Visa’s infrastructure and securing key regulatory approvals, X Money has the potential to disrupt the digital payments market. However, competition with established platforms like Venmo, CashApp, and PayPal will be intense.
As X Money continues to expand and gain further regulatory clearances, it remains to be seen whether Musk’s dream of an “everything app” will fully materialize. With the financial world watching closely, X Money’s success could reshape digital transactions in the years ahead.