X Corp. is preparing to launch the financial service X Money — a payment platform right inside the X social network. According to Elon Musk, the product could become a key element in the platform’s transformation into the so-called «everything app.»
X Corp. is preparing to launch the financial service X Money — a payment platform right inside the X social network. According to Elon Musk, the product could become a key element in the platform’s transformation into the so-called «everything app.»
The first users are already testing the service, and a public launch is expected in the near future.
X Money is an attempt to combine social networking and banking in one product.
Among the declared and tested features: free p2p transfers between users, cashback up to 3% on purchases, up to 6% annual interest on the remaining funds, a Visa debit card with a custom design (nicknamed X), an AI concierge from xAI that analyzes expenses. In fact, we are talking about a financial ecosystem integrated directly into the social network.
Elon Musk does not hide that he is inspired by Chinese superapps like WeChat, where users can communicate, pay, order services, and manage finances.
«We want you to be able to live inside X,» Musk told employees. If the plan works, X Money will become the core of that ecosystem.
The launch is being delayed due to bureaucracy, Bloomberg writes. To operate in the US, the service must obtain licenses in all 50 states. Currently, X does not have them everywhere — in particular, it is not allowed in New York and Massachusetts.
In addition, there are political and regulatory issues surrounding the project. In particular, the service’s financial model, the security of user funds, and X’s ability to operate as a financial institution are being questioned.
Fintech market experts are cautious about X Money. There are many reasons: Musk has repeatedly missed deadlines, it is unclear whether the promised 6% annual interest rate is stable, and X has a weak e-commerce infrastructure. There is also an open question of what will happen to the user’s money if their account with X is blocked.
