X launches X Money for Premium and Premium+ subscribers in the US, integrating financial services into the social network

The X platform has begun making X Money available to users with Premium and Premium+ subscriptions in the United States, following an initial period of restricted, invite-only testing.

Integrated Financial Features

This new feature integrates financial functionalities directly into the social network, aligning with Elon Musk's plan to convert X into an ecosystem of various services. In practice, X Money functions as a digital wallet, allowing users to maintain accounts to make deposits and transfers among themselves without incurring fees or limits.

Furthermore, the service offers a Visa virtual card, which is compatible with Apple Pay through Apple Wallet. For those who prefer a physical option, the company provides a customizable metal card that can include the platform's username.

Variable Benefits by Plan

The benefits offered depend on the subscription level. Premium+ subscribers have the possibility of earning up to 6% per annum (APY) on qualifying amounts. For the Premium plan, receiving this remuneration is conditional upon meeting specific direct deposit requirements.

Another advertised attraction is a 3% cashback benefit on purchases made with the X Card, provided they are qualified. Deposit accounts are managed by Cross River Bank, an institution part of the FDIC system, responsible for guaranteeing bank deposits in the United States.

Elon Musk's Long-Term Strategy

This launch follows a strategic line advocated by Elon Musk since he took over the management of the platform. During a meeting with employees in 2023, the entrepreneur summarized his objective by stating that if money was involved, it would be present on the platform.

However, the project is not without criticism. This year, Senator Elizabeth Warren raised concerns, suggesting that X Money could pose risks to both consumers and national security and the stability of the financial system.

Currently, access to the service is limited to Premium and Premium+ subscribers in the United States. The company also announced that new users who join X Money may receive a welcome bonus of US$15 (approximately R$76.65), marking the platform's first public expansion after the restricted testing phase.

www.albawaba.comJuly 28, 11:36

Elon Musk integrates banking services into X as part of a universal application strategy

On Monday, X CEO Elon Musk launched a banking service feature for all subscribers of the X platform who have paid for Premium and Premium+ tiers in the US. This move is part of efforts to transform X into a universal application that will perform multiple functions.

Banking Service Functionality

The offered banking services allow users to make deposits, conduct peer-to-peer payments, pay bills, transfer money via bank transfers, and send checks, all without needing to leave the application itself.

Storage and Insurance Details

Deposits will be held at a credit institution based in New Jersey, which is also used by several fintech applications. These funds are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.

Strategy and Competitive Advantages

Musk undertook this initiative aiming to make X similar to the Chinese application WeChat, which forms the basis of consumer spending in China due to its single application function for messaging, shopping, and payments. Furthermore, deposits will yield users an annual interest rate of six percent, significantly exceeding the four or five percent yield of competitors and much higher than the near-zero yield of traditional banks.

Competition in the Payments Market

The introduction of this new feature will allow X to compete with popular payment applications such as Venmo, Cash App, and SoFi, leveraging the app's extensive user base of millions.