'X Money' launched for Premium X users across most US states: What to know

X Money's launch brings X one step closer to Musk's vision of turning the platform into an "everything app" that combines communications, payments, and everyday banking

Social media platform X on Monday began rolling out X Money, its digital payments and banking service, to Premium and Premium+ subscribers across most of the US. The Elon Musk-owned platform expanded the service after initially limiting it to a small group of users.

 

The launch takes X closer to Musk’s vision of building an “everything app” combining communication, payments and everyday financial services.

 

What does X Money offer?

 

Integrated into the X app, X Money allows users to make instant peer-to-peer transfers at no cost. It also offers an interest-bearing deposit account, eligible direct deposits up to two days early and a physical Visa debit card.

 

According to the company, users can earn an annual percentage yield of up to 6 per cent and receive 3 per cent cashback on eligible purchases made with the X Card. The service also supports wire transfers, cheques, free ATM withdrawals and dedicated customer support.

 

X Money operates through Visa Direct, Visa’s real-time money movement network.

 

The X Card is linked to a user’s X Money account and can be used for online and in-store purchases wherever Visa is accepted. It can also be added to digital wallets such as Apple Pay and Google Pay.

 

Is X Money a bank?

 

X Money is not a bank. X Payments LLC, the entity operating the service, is a licensed money transmitter, while customer deposit accounts are held at Cross River Bank, which is insured by the Federal Deposit Insurance Corporation (FDIC).

 

Deposits are insured by the FDIC for up to $250,000 per depositor through Cross River Bank. Eligible users are also automatically enrolled in a cash sweep programme that can provide aggregate pass-through FDIC insurance of up to $10 million across participating banks, subject to applicable conditions and limits.

 

What security features does X Money provide?

 

The company said X Money uses passkey authentication, customisable transaction limits and Visa’s fraud-protection measures for card transactions.

 

Where is X Money available?

 

X has secured money transmitter licences in 41 US states and the District of Columbia. The service is not yet available in New York and Massachusetts, where the company is awaiting regulatory approvals.