Elon Musk launches X Money with Visa debit card, 6% yield and real-time transfers — invite-only for now
By Aboki Forex —
Elon Musk's social media company X, formerly Twitter, has launched X Money, a bank account-like product that lets users send money to one another in real time. The service is not a new bank but uses technology and banking services provided by Cross River Bank, with X branding the backbone as X Money.
How X Money works and who can use it
Currently, X Money is invite-only. Invitations are only available to X's paying members. Users who get invited will receive an X-branded Visa debit card that works at any ATM. Users can send money to other X users in real time, the company said.
It is common for new financial companies to piggyback on a traditional bank's infrastructure because chartering a new bank is time-consuming and costly.
Incentives: 6% yield and 3% cashback
To attract customers, X Money is offering a 6% yield on deposits and 3% cashback on eligible purchases. To earn the 6% yield, a customer must deposit at least $1,000 into an account. They must also be signed up for X's premium services, which cost at least $8 a month. That means a customer would need at least $1,600 in total to cover the X premium subscription cost on top of the deposit.
Musk's long-term vision and market competition
Musk has long talked about turning X into an “everything app” that includes financial services. He has roots in financial services: he created one of the first online banks under the brand X.com. That company was later bought and merged into what is now PayPal.
It is still early for X Money, but the company is entering a competitive market dominated by PayPal's Venmo, Zelle, and Cash App.
For Nigerians using X, the service could eventually offer a new way to send and receive money across borders, though it remains invite-only and US-focused for now. The launch signals growing competition in peer-to-peer payments, which may push existing providers to improve rates and features.