X Money launches US payments with yields up to 6%

X Money has begun rolling out to Premium and Premium+ subscribers in the United States, adding deposit accounts, instant transfers, and a Visa debit card directly to the social media platform.

X Money brings banking tools inside the social platform

X Money combines peer-to-peer payments with financial services commonly offered by banks and digital payment applications. Users can send funds instantly to other X accounts without paying a transfer fee.

The service also includes interest-bearing deposit accounts with annual percentage yields of up to 6%. Eligible purchases made through the X Card, a Visa debit card connected to the account, can receive 3% cashback.

Subscribers can receive direct deposits as many as two days early. Other features include wire transfers, checks, free ATM withdrawals, and access to dedicated customer support.

X described the launch as the first peer-to-peer payment service built directly into a US social media platform. The company also claimed it is the first US social network to combine insured deposit accounts, interest earnings, a debit card, and broader payment tools inside its main product.

The rollout is initially limited to Premium and Premium+ subscribers in the United States. X has not provided a timetable for extending the service to free users or international markets.

Cross River Bank powers accounts and transfers

Cross River Bank provides the regulated banking infrastructure behind X Money. The bank holds customer deposits and connects the service to the payment networks needed to move funds.

Cross River operates an application programming interface-based banking system supporting accounts, transfers, and compliance services. The bank said the infrastructure can serve X’s large user base and support additional financial products as the platform expands.

Individual deposits held directly at Cross River receive Federal Deposit Insurance Corporation protection of up to $250,000. X Money also automatically places deposits in a cash sweep program that distributes customer funds among participating insured banks.

Eligible customers can receive aggregate pass-through FDIC insurance of up to $10 million through that program. However, X Payments is not itself a bank or an FDIC-insured institution.

Coverage applies only if a participating insured bank fails and the customer meets all applicable requirements. Users would therefore depend on the underlying banks and the sweep program’s records to establish their eligibility.

X Money uses passkeys to authenticate accounts and allows customers to create individual transaction limits and additional approval requirements. Visa provides security and risk-management protections for transactions completed with the X Card.

Musk previously outlined broader payment ambitions

X owner Elon Musk has discussed turning the platform into a hub for communications and financial services since acquiring the company, then called Twitter, in 2022.

During an internal meeting in October 2023, Musk described payments as covering more than transfers between friends.

“When I say payments, I actually mean someone’s entire financial life,” Musk said.

He added that services involving money or securities could eventually operate through X, arguing that users might no longer need a conventional bank account. The new rollout advances that plan, although its current features continue to rely on regulated banks and established payment networks.

Musk also announced in March that X Money would enter early public access in April. The wider rollout to eligible US subscribers follows that initial testing phase.

Bitcoin and Dogecoin remain outside X Money

Musk has previously supported cryptocurrency payments through his other companies. Tesla began accepting Dogecoin for selected merchandise in 2022, while Musk had earlier proposed allowing users to pay for Twitter Blue subscriptions with DOGE.

He has also described Dogecoin as better suited to routine transactions than Bitcoin, which he views primarily as a store of value. Tesla briefly accepted Bitcoin for vehicle purchases in 2021 before suspending the option over concerns about the energy used for mining.

Those comments have repeatedly fueled expectations that crypto could become part of X’s payment system. However, X has not announced support for Bitcoin, Dogecoin, stablecoins, or any other digital asset within X Money.

Musk has also rejected the idea of an X-issued cryptocurrency. Responding to warnings about unauthorized tokens in 2023, he said X had never launched a crypto token and “never will.”

For now, X Money operates as a dollar-based US financial service supported by Cross River and Visa. Any future crypto integration would require a separate announcement from X.