X Money: Musk's Platform Eyes Credit Card Services
The social media platform X, led by billionaire Elon Musk, is gearing up to expand its services beyond social networking. Recent insights have emerged regarding its aspirations to operate as a payment service provider.
Linda Yaccarino, CEO of X, has hinted at the potential launch of a credit card service, with discussions first surfacing in January. Recent investigations into the platform's source code by AppSensa, a specialist in app analysis, uncovered references to a 'physical_card_option,' suggesting capabilities for managing credit card functions such as activation and deactivation.
Yaccarino elaborated on the diverse functionalities planned for X Money in an interview, indicating that users may soon be able to settle personal expenses, invest, or conduct transactions directly through the platform. In January, X partnered with Visa, aiming to facilitate secure transactions between X Money accounts and transfers to traditional bank accounts.
Initially, X Money will be rolled out in the United States, with plans for expansion into other regions following its debut. The service aims to allow users to purchase merchandise, store funds, and even provide tips to fellow users on the platform. This tip feature is an extension of a function previously introduced by Twitter, enabling users to send payments--including Bitcoin--back in 2021.
As X Money develops, it will also need to navigate a complex landscape of regulatory requirements, including licensing and anti-money laundering protocols. Two years ago, in early 2023, X submitted its first applications to U.S. authorities for payment services. Currently, the platform claims to hold licenses for money transfers across more than 40 states in the U.S.
The timeline for the official launch of X Money remains unclear, although Yaccarino indicated that it is anticipated to be operational within the year. Meanwhile, X is exploring additional avenues to evolve into a comprehensive application platform. The company has successfully established a sports portal centered around the National Football League (NFL), which serves as a prototype for expansion into other sports globally. Furthermore, the application now supports video and audio calling features.
