Elon Musk’s social media company, X — previously known as Twitter — has introduced a new financial service called X Money. Although it functions similarly to a bank account, X Money isn’t a bank. The platform utilizes technology and banking services from Cross River Bank, branded under the name X Money.
Launching a financial service often relies on traditional banking infrastructures due to the complexity and expense involved in starting a new bank. Currently, X Money operates on an invite-only basis, providing users with a Visa debit card that can be used at any ATM. This service allows X users to transfer money to other X users instantly.
Right now, invitations are exclusive to X’s paying members. X Money is trying to attract customers by offering a 6% interest on deposits and 3% cashback on eligible purchases. To qualify for the 6% interest, users must deposit a minimum of $1,000 into their accounts and subscribe to X’s premium services, which cost at least $8 per month.
Elon Musk has expressed his vision for X as an “everything app,” integrating various features including financial services. Musk’s history in financial services began with the creation of one of the first online banks under X.com, which evolved into PayPal. Despite X Money being in its early stages, the company faces stiff competition from existing services like Venmo, Zelle, and Cash App in the peer-to-peer money transfer market.