The social media platform X, owned by Elon Musk, is set to launch its first digital wallet in partnership with Visa, marking a significant step towards Musk’s ambition to create an “everything app.” This announcement was made by X CEO Linda Yaccarino on Tuesday.
X Money Account service details
The upcoming feature, known as the “X Money Account,” will enable users to access in-platform digital wallets and conduct peer-to-peer payments directly linked to their debit cards. An option to transfer funds to traditional bank accounts will also be available. Yaccarino noted on X, “Another milestone for the Everything App: @Visa is our first partner for the @XMoney Account, which will debut later this year. [It] allows for secure + instant funding to your X Wallet via Visa Direct. [It] connects to your debit card, allowing P2P payments. [There is an] option to instantly transfer funds to your bank account. [This is the] first of many big announcements about X Money this year.”
Visa confirmed that these transactions will utilize Visa Direct, their instant money transfer service. Initially, this service will be available to X Money Account users located in the U.S., although details remain uncertain regarding international expansion or additional payment partners. A specific launch date has not yet been announced.
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Musk’s vision for a super app
Elon Musk’s aspiration for X to evolve into a multifunctional platform has circulated for quite some time. Previously, Musk expressed a desire to create a super app similar to China’s WeChat, which encompasses messaging, video, streaming, and payments within a single platform. His interest in such an all-in-one service initiated in the late 1990s with the establishment of X.com, an online banking startup that eventually merged into what became PayPal. Following PayPal’s sale to eBay in 2002 for $1.5 billion, Musk used the proceeds to invest in both SpaceX and Tesla.
X, formerly known as Twitter, has faced challenges since Musk’s acquisition in 2022, including backlash from users and advertisers due to increases in hate speech and misinformation. The competitive digital landscape has intensified, with numerous companies expanding their functionalities in various sectors. Social media corporations like Meta have already integrated multiple features such as shopping and gaming into their platforms.
Regulatory hurdles may also pose challenges to X’s ambitions. U.S. regulators have previously accused Apple of using its dominance to inhibit the emergence of super apps within its ecosystem. An antitrust lawsuit from the U.S. Justice Department claimed that Apple sought to limit the influence of super apps, fearing such platforms would diminish reliance on Apple’s native services, including payment systems. Apple has denied these allegations and is seeking dismissal of the lawsuit in federal court.
For over a year, Musk has been applying for necessary licenses for X to operate as a money service business. As indicated on its website, X Payments LLC is currently licensed in 41 states and is registered with the Financial Crimes Enforcement Network (FinCEN). The X Money service is anticipated to launch in the first quarter of the year, with potential for additional partnerships in the financial sector.
A key application for X Money includes empowering creators to accept payments and manage funds externally. In a prior meeting with advertisers, Musk hinted the payment product might offer features such as high-yield money market accounts in the future.
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