Elon Musk’s social media platform, X, previously known as Twitter, has unveiled a new financial service called X Money. This service enables users to send money to each other in a manner similar to a bank account. X Money operates using the technology and banking services of Cross River Bank, with the backend branded as X Money.

Many emerging financial entities often collaborate with established banks due to the significant time and costs associated with creating a new bank. Currently, X Money is accessible by invitation only, and users will receive a Visa debit card branded with an “X” that can be used at any ATM. The service allows X users to transfer money to each other instantly.

At present, only X’s paying members can receive invitations. To entice new customers, X Money offers a 6% yield on deposits and 3% cashback on eligible purchases. To qualify for the 6% yield, users must deposit at least $1,000 into their account. Additionally, they must subscribe to X’s premium services, costing a minimum of $8 per month. Thus, a deposit of at least $1,600 is needed to cover the costs of X’s premium services.

Musk has consistently expressed his vision of transforming X into a comprehensive app that includes financial services. His background in financial services includes founding one of the first online banks under the brand X.com, which was later acquired and integrated into what is now PayPal.

As X Money begins its journey, it enters a competitive market alongside established players like PayPal’s Venmo, Zelle, and Cash App. The service aims to make its mark in the realm of peer-to-peer money transfers.