Elon Musk's social media app X has rolled out its X Money banking service to all US subscribers of its paid Premium and Premium+ tiers. This move is part of Musk's broader ambition to transform X into an 'everything app' similar to China's WeChat, which integrates messaging, shopping, and payments. X Money, which had been in testing since late June with a select group of top-tier subscribers, now allows users to hold deposits, send peer-to-peer payments, pay bills, transfer money by wire, and mail checks, all within the X app.
Deposits through X Money are held at Cross River Bank, a New Jersey-based lender that partners with several financial-technology apps, and are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. X Money offers an annual percentage yield of up to six percent, significantly higher than the four to five percent offered by competitive US high-yield savings accounts and far above the near-zero rates at traditional banks. Premium+ subscribers can earn the top rate directly, while Premium users must meet direct-deposit requirements.
Cross River Bank described the launch as the first government-insured banking platform in the United States built on a social network. This positions X to compete with established payment apps such as PayPal's Venmo, Block's Cash App, and SoFi. The service has drawn scrutiny from Washington, with Senator Elizabeth Warren pressing Musk on how X Money would generate sufficient revenue to pay the promised yield and citing past FDIC enforcement actions against Cross River over lending practices.
The introduction of X Money marks a significant step in Musk's strategy to integrate multiple services within a single app, potentially transforming user behavior and consumption patterns. This development could have global implications, including in markets like Bangladesh, where digital financial services are rapidly expanding.
