Social network X, owned by Elon Musk, has announced a strategic partnership with Visa to support its upcoming financial product X Money. The cooperation will use Visa Direct’s real-time transfer solution, which will be the basis for the X Money wallet, TechCrunch reports.
This cooperation should enable key financial transactions, including replenishing funds in the X Money wallet, connecting to debit cards for transactions, and transferring money back to users’ bank accounts.
X CEO Linda Yaccarino announced the partnership, calling it the first of “many big announcements” related to X Money this year. At the moment, the company is only announcing the cooperation and has not yet launched the product.
Elon Musk has long had a vision of turning X into a financial platform. Soon after acquiring Twitter, which he later renamed X, he outlined plans to integrate financial instruments, such as the ability to support content creators (tips) and offer high interest rates for users who store funds on X.
Since then, X has been actively obtaining money transfer licenses in various US states through its subsidiary X Payments. The company currently holds licenses in more than 40 states, demonstrating its intentions to expand into the financial services sector.
It’s worth mentioning that in a letter to employees, Elon Musk revealed that Platform X is now “barely breaking even.” Meanwhile, banks, including Morgan Stanley, Barclays, and Bank of America, are working to sell some of the $13 billion of debt associated with Musk’s acquisition of the platform in 2022 for $44 billion.
