X to introduce in-app payments with Visa powered ‘X Money’

Despite missing Elon Musk’s initial target for a 2024 launch, X is advancing its payment integration plans with the introduction of X Money, set to be activated later this year. The new feature will enable users to make in-app payments and transfer funds to their bank accounts.

The platform's CEO Linda Yaccarino announced Visa as the company’s first partner for the X Money account, stating that the service would debut later this year. “Another milestone for the Everything App: Visa is our first partner for the X Money Account, which will debut later this year. First of many big announcements about X Money this year,” Yaccarino said.

Visa will power the service, facilitating payment transfers between traditional bank accounts and a digital wallet within the app. This will enable instant peer-to-peer payments, a key component of Musk’s vision for X as an “everything app.”

The announcement follows several delays in the platform's payment plans. The company is still in the process of securing payment transmitter licences in the United States, a crucial step in its expansion. the platform has already obtained approvals in 41 states but previously withdrew its application in New York, a key market for its payments rollout.

Musk has acknowledged the significance of New York and California in the platform's licensing process, stating that approvals in these states are essential before moving forward. The partnership with Visa could aid in streamlining regulatory approvals, potentially allowing X Money to launch in the U.S. later this year.

However, the initial rollout will be limited to the U.S., with regulatory approvals in other regions expected to present additional challenges. Musk’s political stance has led to strained relationships with some government and regulatory bodies, which may impact the platform's ability to expand its financial services globally.

X Money represents a step toward Musk’s long-term goal of transforming the platform into a multi-functional platform, similar to China’s WeChat, which integrates social media, payments, and digital identity services. Musk first outlined his vision for an 'everything app' in 2000 during his early work in digital payments, though it was not adopted by PayPal at the time.

Other companies have attempted similar integrations. Meta has introduced payments on Messenger and WhatsApp, but these efforts have faced regulatory barriers and limited adoption in Western markets.

While X continues to pursue its broader payments strategy, its success will depend on regulatory approvals, user adoption, and competitive positioning in the financial technology space.