X Secures Visa Partnership For Expanded Financial Offering

Elon Musk’s social media platform X launched a new digital wallet and peer-to-peer payment services in collaboration with Visa on Tuesday. In a post on the platform, CEO Linda Yaccarino revealed that X has partnered with Visa which is the largest credit card network in the U.S. to introduce ‘X Money Account’. 

This partnership will allow the users to transfer funds between their traditional bank accounts and their digital wallets. It will also facilitate instant peer-to-peer payments that will be similar to services like Venmo or Zelle. 

This marks the first significant step by X towards establishing a financial ecosystem for the platform which was earlier known as Twiter before Musk acquired it in 2022. 

Musk, who also leads Tesla, described the $44 billion purchase as a means to develop an ‘everything app’, with the vision of a space where users can manage their entire financial lives. 

In 2021 under the leadership of Jack Dorsey, Twitter launched a bitcoin tipping feature that allowed users to link their crypto wallets and receive payments in Bitcoin. However, to operate as a money service business in the U.S., navigating through a complex regulatory environment was essential. 

For over a year, Musk has been pursuing the required licenses for X. As has been stated on its website, X Payments LLC is now licensed in 41 states and has been registered with the Financial Crimes Enforcement Network (FinCEN). 

According to a source familiar with the developments, the X Money service is expected to launch in the first quarter, with additional partnerships in the financial sector likely on the horizon. 

The initial applications for X Money will be to empower craters on the platform to accept payments and manage funds independently of external financial institutions. It has been shared by the source who requested to remain anonymous to discuss sensitive information.