X Partners with Visa to Launch Real-Time Payment Service

NEW YORK (AP) — X is collaborating with Visa to introduce a real-time payment system on its social media platform, marking significant progress in Elon Musk’s long-term vision to develop an “everything app.” Visa is the initial partner for X’s “X Money Account” service, set to launch later this year, according to X CEO Linda Yaccarino. The service will include an in-platform digital wallet and peer-to-peer payments linked to users’ debit cards, with the option to transfer funds to a bank account.

These services will be powered by Visa Direct, Visa’s instant money transfer service, and will be available to X Money Account users in the U.S. The availability of X Money in other countries and potential partnerships with additional payment providers remain uncertain, as does the exact launch date in the U.S.

Yaccarino described the partnership with Visa as a “milestone for the Everything App” and the “first of many big announcements about X Money this year.” The idea of X, formerly Twitter, becoming an “everything app” has been discussed for years. Before acquiring the platform for $44 billion in 2022, Musk expressed interest in creating a “super app” similar to China’s WeChat, which offers video chats, messaging, streaming, and payments.

Musk’s fascination with such a platform dates back to the late 1990s when he launched X.com, a startup that later merged into what became X.com. He continued to advocate for PayPal to diversify but was opposed by company CEO Peter Thiel and other executives. PayPal was sold to eBay in 2002 for $1.5 billion, providing Musk with the funds to invest in SpaceX and Tesla.

Today’s competitive landscape sees several companies expanding their in-platform offerings. Social media giants like Meta have added shopping, games, and dating features. Consumers now have various platforms for communications, payment services, entertainment, and more. The success of X’s “everything” features remains to be seen. Since Musk’s 2022 takeover, the platform has faced criticism from users and advertisers over rising hate speech and misinformation.

X’s ambitions could also place the company in the crosshairs of other powerful tech giants attempting to fend off perceived competitive threats. U.S. regulators have alleged that Apple has been illegally using its market power to stifle super apps from accessing its iPhone since 2017. The U.S. Justice Department, as part of an antitrust lawsuit filed last year, stated it had found evidence that Apple believed a super app would reduce consumers’ usage of the iPhone’s own software and services, including payment processing. Apple has denied the allegations and is seeking to dismiss the case.