The billionaire entrepreneur behind Tesla and SpaceX, Elon Musk, is back in the news. This week, it’s for his grandiose idea to turn X, the app formerly known as Twitter, into a money machine. Musk sets the stage for a new chapter in digital payments as X Money is set to launch in 2025.
The Vision Behind X Payment
Musk’s plan for X Money is part of his broader ambition to build an “everything app,” like China’s WeChat. This super app would integrate social media, messaging, and financial services in one fluid interface. The X Money platform aims to enable users to transfer money peer-to-peer, link up their debit cards as well as instantly send money to their bank accounts. Visa will be its first major partner, and the service will launch in the first quarter of 2025.
The concept isn’t completely foreign to Musk. In the late 1990s, he helped found X.com, an online bank that transformed into PayPal. Now, he’s going back to his roots, riding on the back of X’s monstrous user base — over 1 billion strong as of December 2024 — to create a financial ecosystem the likes of which could challenge established entities like PayPal and Venmo.
Nor do Musk’s attempts to chip away at regulatory hurdles end there. Musk has focused his sights on the Consumer Financial Protection Bureau (CFPB), the agency overseeing digital payment platforms in his role at the Department of Government Efficiency (DOGE), a Trump administration initiative. Critics claim that Musk is acting out of self-interest because greater CFPB oversight could apply to X Money.
Partnerships and Features
Partnership with Visa is a significant milestone for X Money. X Money’s platform for peer-to-peer payments and digital wallets will be powered by Visa Direct, the payment giant’s instant money transfer service. This partnership guarantees users immediate, safe funding, allowing platform creators to monetize their content with ease.
The service will also be expected to add cryptocurrency features, which would include the use of stablecoins like USDC in day-to-day payments. The move is consistent with what had been Musk’s longstanding interest in crypto, especially Bitcoin and Dogecoin.
Challenges and Controversies
Beneath the hype, X Money has much work ahead. Inconsistent regulations — particularly around integrating crypto — can halt its rollout. Musk’s aggressive tactics behind the initiative, like launching X Money before he had gotten clearance from every state he’s targeting, have also drawn controversy.
Musk has faced scrutiny over whether his moves could amount to conflicts of interest, such as launching a payment service while working to disassemble the CFPB, undermining trust with the public, according to critics like former CFPB director Richard Cordray. Senator Elizabeth Warren even compared Musk’s actions to “a bank robber trying to fire the cops.”
The Road Ahead
With X Money gearing up for launch, the fintech community is watching closely. At the time of writing, X Money is not yet live, but if it is successful, it could revolutionize digital payments with lower fees, faster payments, and social media integration. For creators on the X platform, the service promises new streams of revenue for those able to bring their followers to the service — including the ability to accept payments and manage funds directly within the app.
But there are challenges ahead. Integrating innovation with regulatory alignment will be a determinant of X Money’s sustainability. Whether X Money emerges as the next great disruptor or another grand experiment that misses its mark will depend on how Musk manages these challenges.
To sum up, Elon Musk’s X Money is expected to revolutionize digital payments. With its bold vision, strategic partnerships, and Musk’s tireless persistence, X Money could indeed become the West’s WeChat equivalent. But as with anything Musk does, the journey will be far from ordinary.
