Elon Musk Launches Invite-Only X Money With Visa Debit Card, Expands X Into Finance

New Delhi: Elon Musk has taken another big step towards making social media platform X (formerly Twitter) an “everything app”. The company has launched a new digital payment and financial service called X Money, through which users will be able to send money to each other instantly. At present this service has been started on a limited scale and is being made available on invite-only basis. Musk has long been working on a plan to make X not just a social media platform but an integrated platform of messaging, payments and digital services.

What is X Money and how will it work?

X Money looks and feels like a digital banking account, but it is not a bank per se. The banking infrastructure behind this is being provided by the American financial institution Cross River Bank, while the entire service will be operated under the brand name of X. That means users will get banking like facilities, but banking operations will be done through the partner bank. This model is becoming increasingly popular in the fintech sector because it does not require companies to obtain a separate banking licence.

Who will get this facility first?

Currently, X Money is not available for all users. The company is starting it in a phased manner. In the initial phase, invitations are being sent only to X Premium subscribers. Customers who join the service will receive an X branded Visa debit card, which can be used at ATMs and merchant networks that accept Visa. Apart from this, users will also be able to transfer money to other X users in real time.

What offers have been made to attract users?

The company has also added many financial benefits with X Money. It promises to give 6 percent annual return on the deposited amount. However, for this, a minimum balance of at least US $1,000 will have to be maintained in the account. Along with this, membership of X Premium is also mandatory. Apart from this, you will also get the benefit of 3 percent cashback on eligible transactions done through debit card. It is believed that through these offers the company wants to add more and more customers in the initial phase.

Will PayPal's experience be beneficial?

Elon Musk is not a new player in the digital payments space. Before Tesla and SpaceX, he co-founded online banking company X.com, which later became part of PayPal. This same experience is now visible again through X Money. Experts believe that Musk's goal is to bring social media, digital payments and online commerce on a single platform.

Will companies like Venmo and Cash App be challenged?

X Money has come into the market at a time when platforms like Venmo, Zelle and Cash App are already popular among millions of customers in America. In such a situation, the biggest challenge before X will be to win the trust of the users and prepare them to keep money on its platform. However, the combination of features like social media, instant payment, debit card, interest and cashback can differentiate X from its competitors. If the initial test is successful, the company can expand this service to other countries in the coming time.