Partnership between X and Visa can change digital payments

Elon Musk brings visa into X with plans to create a complete financial ecosystem while seeking to turn the platform into an “application for everything”

Ax, Elon Musk’s social media platform, announced on Tuesday (28) the launch of a digital wallet and payment services between users, with the partnership of Visa, the largest network of credit cards in the United States.

The company has signed an agreement with Visa to be the first partner of what is being called “X Money Account”, as announced by CEO Linda Yaccarino in a publication on the platform. Visa will allow X users to move funds between traditional bank accounts and their digital wallets, as well as instant peer payments, similar to what happens with services such as Zelle or Venmo.

This is X’s first concrete step in developing a financial ecosystem for the social media site, previously known as Twitter before its purchase by Musk in 2022. At the time, the billionaire, who is also Tesla CEO, said that the Acquisition of $ 44 billion aimed to create an “application for everything”. He later said the platform would allow users to manage “their entire financial world” in it.

By 2021, under the leadership of Jack Dorsey, Twitter had launched a toth feature in Bitcoin, allowing users to add crypto portfolio addresses and receive payments to the world’s largest digital currency. However, becoming a US financial service company required to navigate a much more complex regulatory scenario.

For over a year, Musk has been requesting licenses to operate in this sector. According to the X website, X Payments LLC is already licensed in 41 states and registered with the Financial Crime Execution Network (Fincen).

Service X Money should be launched in the first quarter, and is expected to be more partnerships with financial institutions, according to a source familiar with the matter. One of the first use cases will be to allow content creators on the platform to receive payments and store funds without depending on external institutions, said the person, who spoke on anonymous condition to discuss internal issues.

In November 2022, Musk suggested in a meeting with advertisers, publicly broadcast on Spaces, that the platform’s future payment product could offer bank resources, such as a high -profitable monetary market account.

Visa representatives refused to comment on the matter.