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Musk's X secures Visa partnership for payments push

Social media app X says it has struck a deal with Visa ahead of the launch of a digital wallet and peer-to-peer payments service later this year.

  9 3 comments

Musk's X secures Visa partnership for payments push

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

In post on the site, formerly known as Twitter, X CEO Linda Yaccarino says Visa is the first partner for the @XMoney account.

The account, she says, will allow for instant X Wallet funding via Visa Direct, enable users to connect their debit cards for P2P payments, and have the option to instantly transfer funds to bank accounts.

Visa has confirmed the partnership, saying: "Visa Direct will make it possible for US X Money Account users to fund and transfer money in real-time with their debit card."
 

X owner Elon Musk has a long-held ambition to transform X into an "everything app" where users can conduct their "entire financial life".

In October 2023, at an all hands call with employees, he said: “When I say payments, I actually mean someone’s entire financial life. If it involves money. It’ll be on our platform. Money or securities or whatever. So, it’s not just like send $20 to my friend. I’m talking about, like, you won’t need a bank account.”

The company has been busy securing money transmission licenses across the US as it prepares for its push into financial services, with Yaccarino promising "many big announcements about X Money this year".

The move to diversify comes as Musk struggles to turn the financials of his $44 billion acquisition around.

According to the Wall Street Journal, in a recent email to staff, Musk said growth on the platform is “stagnant” revenue is “unimpressive” and "we’re barely breaking even".

 

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Comments: (3)

A Finextra member 

It may come as a suprise for the x-people that customers do not want to pay för payment services so it will nit bring along much fresh revenue. Especially customers of a free-to-use platform are not the most inclined to pick up payment services and  pay for these.  Payment initiation or open banking service will drive additionbal cost and someone has to pay either for the service or for using the collected data for other purposes. 

A Finextra member 

Visa’s brand has long been associated with trust and global connectivity, so this partnership feels like a misstep. Businesses have a responsibility to consider not just the financial opportunities, but also the ethical implications of their alliances. Associating with Musk, who has repeatedly shown a disregard for accountability and inclusivity, risks alienating customers who value integrity and social responsibility.

Here’s hoping Visa reconsiders the message this sends and prioritizes partnerships that align with a more positive and unifying vision for the future.

A Finextra member 

Thankfully our card programme runs on MC. If it was with Visa, I would seriously consider moving in light of this very bad association.

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