Elon Musk announced late Tuesday that X's digital payment system, X Money, will expand early testing next month (April), starting in the U.S. market and later going global. The move brings X one step closer to becoming an "everything app."
Based on screenshots shared by early testers, the X Money account offers a 6% annual percentage yield on deposits, far above the rates at most traditional U.S. savings accounts. Funds are held by Cross River Bank, an FDIC member, with up to $250,000 in federal deposit insurance. Users also receive a Visa metal debit card printed with their username, with cashback on everyday purchases. This package — high interest, federal insurance, a physical metal card — puts X Money in direct competition with PayPal, Venmo, and even traditional banks.
6% APY and Metal Card: A Direct Challenge to PayPal
X Money initially uses Visa Direct technology, with back-end processing by Stripe. X struck a deal with Visa last year to enable in-app direct payments. The high-yield deposit and premium card are clearly designed to attract younger users and crypto enthusiasts, poaching customers in the post-banking era.
Emulating WeChat: Social + Finance Integration
Musk's strategy mirrors the success of China's WeChat, where users pay via QR codes, book taxis through mini-apps, and pay utility bills — all within one super app. X aims for the same effect: letting users watch streaming, message, socialize, and handle finances in a single app. The huge user base could turn social connections into financial transactions, the core of a super app.
Regulatory Clearance Done, Crypto Not Yet
On the regulatory front, X Payments LLC obtained money transmitter licenses in 41 states by end-2024, and secured approvals in key markets like New York and California in January 2025. With the Trump administration taking a more permissive stance on financial innovation, X's financial expansion is now in motion. However, X Money currently shows no signs of crypto integration. Despite Musk's long-time public support for Dogecoin and Bitcoin, X appears to be taking a pragmatic path: first stabilize with fiat payments and regulatory trust, then gradually explore digital assets.