Musk’s X launches invite-only ‘X Money’ payment service
Feature enables peer-to-peer transfers, bill pay, and wire transfers directly in app for paying subscribers
Elon Musk’s social media company X, formerly known as Twitter, launched its own bank account-like product where users can send money to one another.
The service, known as X Money, is not a new bank. X Money is using technology and banking services provided by Cross River Bank and branding that backbone as X Money. It is common for new financial companies to use a traditional bank’s backbone to launch their services, as chartering a new bank is a timely and costly process.
Currently X Money is invite only and users will receive an “X”-branded Visa debit card that is usable at any ATM. Users of X will be able to send money to other X users in real-time, the company said. Invitations are only available to X’s paying members presently.
To attract customers, X Money is offering a 6 per cent yield on deposits and 3 per cent cashback on eligible purchases.
To earn the 6 per cent yield, a customer would need to deposit at least US$1,000 into an account. Customers would also have to be signed up for X’s premium services, which is at least US$8 a month. It would require at least a deposit of US$1,600 to cover X’s premium services cost.
Musk has long talked about turning X into an “everything app” that would include financial services. For years, he has explicitly stated his desire to replicate China’s WeChat, an all-in-one platform for messaging, shopping, and payments that serves as a pillar of consumer spending in China.