Elon Musk’s social media company X has launched a bank account-like product that allows users to send money to one another in real time, marking a significant step in the billionaire’s long-stated ambition to turn the platform into an “everything app.”
The service, known as X Money, is not a bank. It uses technology and banking services provided by Cross River Bank, with X branding layered on top as the core asset. This is a common approach for new financial companies, as chartering a new bank is a costly and time-consuming process.
X Money is currently invite-only, with access limited to X’s paying members. Users who receive an invitation will be issued an X-branded Visa debit card that can be used at any ATM, and will be able to send money to other X users in real time.
To attract customers, X Money is offering a 6% yield on deposits and 3% cashback on eligible purchases. Earning the 6% yield requires a minimum deposit of at least $1,000. Customers must also be subscribed to X’s premium services, which cost at least $8 a month, meaning a deposit of at least $1,600 would be needed to cover that cost.
Musk has long spoken about transforming X into a financial services platform. His connection to the industry goes back to the early days of the internet, when he founded one of the first online banks under the name X.com. That company was later acquired and merged into what eventually became PayPal.
X Money enters a competitive market currently dominated by PayPal’s Venmo, as well as peer-to-peer transfer services such as Zelle and Cash App.
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