Elon Musk launches X Money to rival PayPal, Cash App
X Money is now live in the U.S., giving Premium subscribers FDIC-insured banking, a 6% yield on deposits, and a metal debit card as Elon Musk pushes X toward becoming an all-in-one "everything app."
TECH
7/31/20261 min read
Elon Musk has taken a real step toward turning X into an "everything app" with the U.S. launch of X Money. Available to Premium and Premium+ subscribers, the feature folds core banking functions directly into the app: deposits, peer-to-peer transfers, bill pay and wire transfers, all without leaving X.
New Jersey-based Cross River Bank supplies the banking infrastructure behind those features. Deposits carry standard FDIC insurance up to $250,000, and a cash sweep program spreads funds across partner institutions to push total coverage as high as $10 million per account, a level of protection most payment apps like PayPal or Venmo don't offer.
The banking tools come with steep financial incentives attached. Premium+ members earn a 6% annual percentage yield on deposits automatically, while standard Premium subscribers can unlock the same rate by setting up direct deposit, a return that beats most high-yield savings accounts and traditional banks on the market right now.
Subscribers also get the X Card, a metal Visa debit card built for Apple Wallet and Google Pay. It carries 3% cash back on eligible purchases, fee-free ATM withdrawals worldwide, and the option to personalize the card with a user's X handle. New cardholders get a $15 welcome deposit.
The launch pushes Musk closer to the all-in-one platform he's talked about for years, one that folds social media, payments and personal finance together the way WeChat does in China. But the company's move into financial services has drawn scrutiny from lawmakers, too. In an April letter, Sen. Elizabeth Warren raised a range of concerns about the rollout, among them how X plans to sustain a 6% yield without turning to higher-risk investments.
Those questions haven't stopped the rollout. X Money now puts the platform in direct competition with PayPal, Cash App and SoFi. The harder task ahead is getting users to trust X with their money as readily as they trust it with their feed.
Images: X Money