Elon Musk launches invite-only X Money with a Visa debit card, 6% yield and real-time transfers - AP News

What the report says

The Associated Press reported from New York that Elon Musk’s X has introduced X Money, a payments product that resembles a bank account and allows users to send funds to one another. The service is not itself a bank; AP reported that X Money relies on technology and banking services from Cross River Bank, a model commonly used by fintech companies that want to offer financial products without obtaining their own bank charter.

According to AP, X Money is currently available by invitation only and is limited for now to paying X members. Users who get access will receive an X-branded Visa debit card that can be used at ATMs, and X says the product will support real-time transfers between users on the platform. To encourage sign-ups, the company is offering a 6% yield on deposits and 3% cash back on eligible purchases.

AP reported that the 6% yield requires at least $1,000 on deposit and an active subscription to X’s premium service, which starts at $8 per month. The report notes that a user would need roughly $1,600 deposited for the advertised yield to offset that subscription cost.

The launch fits Musk’s long-stated ambition to turn X into an “everything app” that includes financial services. AP also noted Musk’s earlier ties to online finance through X.com, a company that later became part of PayPal. X Money enters a crowded market where established peer-to-peer payment products such as Venmo, Zelle and Cash App already have large user bases.