Elon Musk’s social media platform, X (formerly Twitter), is set to introduce financial services within its app, with the launch of its first digital wallet later this year.
The company has announced a strategic partnership with Visa, enabling seamless transactions through Visa Direct, a real-time money transfer solution.
Linda Yaccarino, CEO of X, confirmed in a post that the forthcoming service, X Money, will allow users to securely fund their X Wallet via Visa Direct. Additionally, the platform will offer integration with debit cards, facilitating person-to-person payments and instant fund transfers to bank accounts.
DeepSeek: China’s AI breakthrough shakes tech industry, Wall Street
“This is the first of many big announcements about X Money this year,” Yaccarino stated.
The prospect of integrating financial services into X was initially discussed following Musk’s acquisition of the platform. With the Visa partnership, X Money is expected to debut in select US states before expanding globally. Reports suggest that app researchers have repeatedly found embedded code referencing X Money’s functionalities, including wallet funding and peer-to-peer transactions.
X Payments LLC, a subsidiary managing the service, is currently licensed in 41 states and registered with the Financial Crimes Enforcement Network (FinCEN), ensuring compliance with financial regulations. The platform is also reportedly planning further partnerships to enhance its payment ecosystem.
One of the primary objectives of X Money is to provide a financial solution for creators on the platform, allowing them to receive and store payments independently. According to a CNBC report, the service will roll out in the first quarter, with further enhancements expected throughout the year.
Despite these ambitious plans, Musk has acknowledged ongoing financial challenges for the platform. According to the Wall Street Journal, he recently sent emails to X employees, admitting that the company is “barely breaking even” due to stagnant user growth and underwhelming revenue.
Trump says Microsoft is one of the companies eyeing TikTok
“Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even,” Musk reportedly stated.
Since acquiring Twitter in a $44 billion deal in late 2022, Musk has implemented significant changes, including discontinuing the free verification programme, introducing a paid membership model, and rebranding the platform as X. The addition of financial services marks another step in Musk’s broader vision of transforming X into an all-in-one digital ecosystem.
As X Money prepares for its launch, industry experts will be closely monitoring its impact on the digital payment landscape and whether it can help revitalise X’s financial standing.
Source: Indian media