X Moves Into Financial Services With New Visa Deal

Social media platform X is expanding into financial services through a new arrangement with credit card giant Visa (V). X announced that it is launching a digital wallet and peer-to-peer payment services for users of its site that are to be provided by Visa. Visa, the largest U.S. credit card network, is the first partner for what’s being called the “X Money Account.” Visa will enable users of X, formerly known as Twitter, to move money between traditional bank accounts and their digital wallet, and to make peer-to-peer payments via financial technology apps such as Zelle and Venmo.The new deal with Visa represents the first move by X into financial services. X owner Elon Musk, who purchased the social media company in 2022 for $44 billion U.S., has long talked about expanding into financial services. Musk has also talked of turning X into an “everything app.” Since acquiring Twitter, Musk has rebranded the social media site as X and taken the company private. He has also streamlined the company’s operations and raised prices for the premium service on the social media platform.The new money service is expected to launch in the current first quarter of 2025, and deals with more financial partners are likely in coming months, said X in a statement. One of the main uses for “X Money” will be to allow creators on the site to accept payments and store funds without the need for external institutions such as banks.X is privately held and its stock does not trade on a public exchange. The stock of Visa has risen 22% in the last 12 months and currently trades at $334.48 U.S. per share.