Elon Musk launches X Money; What it is and how it works?

Elon Musk-owned social media platform X has released a new digital payments service called ‘X Money,’ allowing users to transfer money, get a physical Visa debit card, make in-store payments, and much more, similar to any other banking services. X Money is currently being rolled out to X users in the US with X Premium and Premium+ subscriptions. Here’s everything you need to know about X Money and how it works.

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What is X Money? 

X Money is a banking and payments service built directly into the social media platform. This is considered to be the biggest move toward turning X into an all-in-one platform that combines social networking, payments and everyday banking.

The banking service will offer features like deposit accounts, peer-to-peer payments, a Visa debit card and direct deposit, within the X app. Subscribers can also send money to other X users without any transfer fees, pay bills, send wire transfers, and even mail physical checks.

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Users can also apply for X’s debit Visa card, which has a metal finish stamped with the user's handle, and it claims to offer 3% cashback and up to 6.00% annual percentage yield (APY) on deposits.

It also uses Visa Direct, a payment technology that offers fast person-to-person money transfers, quick deposits and withdrawals, and real-time movement of funds between bank accounts and debit cards.

How does X Money work?

X Money does not operate as a bank, as users' money is held by Cross River Bank, a regulated bank based in New Jersey. Since it comes under the Federal Deposit Insurance Corporation (FDIC), eligible deposits are insured for up to $250,000 per depositor. X also runs a cash sweep program that distributes customer balances across multiple partner banks.

For security, X Money supports passkeys instead of passwords. Therefore, users can access the feature via fingerprint, face recognition, or by using the device's PIN. Other payment controls include transaction limits, verification for selected payments, and others

Will X Money come to India?

As of now, X Money’s India launch is not confirmed, and Elon Musk has revealed plans for global rollout. However, if it comes to India, the service will compete with Google’s GPay, WhatsApp Payments, PhonePe, and other similar banking and payments service providers.