X is planning to launch a slew of products in 2025 and X Money will be one of them. It was expected to be launched in 2024 but got delayed and one of the reasons behind is inability to get money transmitter license in New York.
Till now transmitter license has been given for 38 US states but it had to be withdrawn for New York last year as legal filing was made in opposition to its payment push which was questioning the character and fitness of X for holding such authority.
One of the main troubles with regards to filing is that Saudi Crown Prince Mohammed bin Salman is one of the investors in X. As per new findings, X Money will still be launched in selected states in U.S. As of now, X is looking out for regional roll out till the time they are working to address the concerns pertaining to non-approving regions.
Launching X Money in selected states would get the ball rolling on the project faster even though limited availability would restrict usage significantly. This is happening even before X is considering international launch where Elon Musk divisive political stance is looking to pose a significant challenge for approval of payment license. It would be supporting cryptocurrency transactions which also includes and Elon Musk is also collaborating with Visa for enabling seamless payment processing. They have been developing the payments infrastructure since 2022 with X Payments LLC and are also busy securing licenses in 41 US states. Musk has been looking to get regulatory approval from all US states before full scale launch.
This is part of the larger plan of Elon Musk to develop X into an everything app where it would not just be a social media app but also include financial services and commerce. With X Money, users will be getting access to a user friendly way of sending and receiving funds directly within the app which aligns the platform with other apps like Whatsapp.
Musk had introduced several changes which includes a subscription based verification system and increased monetization options for content creators. He will be looking to secure approval across 50 states before the full scale launch of X Money. If things fall in place, it would change how users will be able to interact on the platform which would allow them to send, receive and manage funds without leaving the app.
This would emerge as a massive business opportunity for the company and in case users start using the platform, it could become a single platform for business payments, financial transactions and commerce, all within one ecosystem.
With this partnership with Visa, it will let consumers to have a seamless experience along with a one stop shop for posting of content and payment for the same too. It would enable 600 million active users to fund X Money accounts. With it, users will be able to transfer funds back to their bank account instantly from their X Money account. Creators on the X platform would get paid much quicker when they will be using Visa Direct for moving money back into their bank accounts.
X Money is registered with money transmitter licenses in 40 states along with District of Columbia. Some of the states where it still needs to partner is Delaware, Alaska, Minnesota, Vermont, Massachusetts, New York, Washington, Wisconsin, Montana and Hawaii.
If X becomes pulling this out successfully then it will be able to rival established players like Cash App and PayPal. Let us wait and see how this all unfolds in the coming months. Stay tuned for more info on this piece of information!
