X Launches X Money Payments Service for Premium Users
On Monday, social media platform X initiated the rollout of X Money, its digital payments and banking service, to Premium and Premium+ subscribers throughout the majority of the United States. The platform owned by Elon Musk has broadened its service after initially restricting access to a select group of users. The launch brings X nearer to Musk’s vision of creating a “everything app” that integrates communication, payments, and everyday financial services. Integrated into the X app, X Money facilitates instant peer-to-peer transfers without any associated fees for users. It additionally provides an interest-bearing deposit account, allows eligible direct deposits to be accessed up to two days in advance, and includes a physical Visa debit card.
According to the company, users can earn an annual percentage yield of up to 6 percent and receive 3 percent cashback on eligible purchases made with the X Card. The service additionally facilitates wire transfers, cheque transactions, complimentary ATM withdrawals, and offers specialised customer support. X Money operates through Visa Direct, which is Visa’s real-time money movement network. The X Card is associated with a user’s X Money account and is applicable for online and in-store transactions at any location that accepts Visa. It can also be integrated into digital wallets like Apple Pay and Google Pay.
X Money is not a bank. While customer bank accounts are housed with Cross River Bank, which is covered by the Federal bank Insurance Corporation, X Payments LLC, the company running the service, is a licensed money transmitter. Deposits are insured by the FDIC for up to $250,000 per depositor via Cross River Bank. Eligible users are automatically enrolled in a cash sweep program that can provide aggregate pass-through FDIC insurance of up to $10 million across participating banks, subject to applicable conditions and limits.
The company stated that X Money employs passkey authentication, customisable transaction limits, and Visa’s fraud-protection measures for card transactions. X has obtained money transmitter licenses in 41 US states and the District of Columbia. The service remains unavailable in New York and Massachusetts, as the company is currently awaiting regulatory approvals.
