Elon Musk’s social media firm X has introduced a tool similar to a bank account that allows users to transmit money to each other.
X Money, the service, is not a brand-new bank. Cross River Bank’s technology and financial services are used by X Money, which is branding that foundation as X Money.
Since chartering a new bank is a time-consuming and expensive process, it is customary for new financial organizations to debut their services using the foundation of an existing bank.
Users will receive a Visa debit card with the “X” brand that can be used at any ATM, X Money is currently only available to invitees.
According to the corporation, X users will be able to instantly send money to other X users. Currently, only X’s paying members are eligible for invitations.
X Money is providing 3% cashback on qualified purchases and a 6% income on deposits in an effort to draw clients. A user would have to deposit at least $1,000 into an account in order to receive the 6% interest.
Additionally, clients would need to sign up for X’s premium services, which cost at least $8 per month. To pay for X’s premium services, a minimum deposit of $1,600 would be needed.
Musk has long discussed transforming X into a financial services-related “everything app.”
Musk started one of the earliest online banks under the name X.com, demonstrating his background in the financial services industry. Later, that business was acquired and combined to form PayPal.
Although X Money is only getting started, the company is entering a cutthroat market that is dominated by peer-to-peer money transfer services like Zelle and Cash App, as well as PayPal’s Venmo money transfer service.
