Elon Musk has officially entered the peer-to-peer and digital wallet space with X. In line with his vision of making X (formerly Twitter) a super app, the recently announced Visa-X partnership is a significant boost to making X a platform for “everything.” X chose Visa as its first partner for “X Money,” revealed X Inc’s CEO Linda Yaccarino through a tweet.

The new venture is seen as a direct shot at neobanks by offering a suite of transactions, transfers, and payments integrated effectively into the platform. Now, with Visa’s support, X Money is looking to provide more convenience and expand the platform’s role in users’ daily activities.

The Visa-X Partnership: Here’s What We Know So Far

On January 28, 2025, Linda Yaccarino (CEO of X Inc.) announced a significant move that X has partnered with Visa to launch the “X Money Account.” X Money is a digital wallet and real-time payment service designed to enable secure P2P transactions within the X platform’s interface.

According to Linda’s tweet, the users can fund their X Wallet via Visa Debit, link their debit cards, and transfer funds seamlessly. Though the service is expected to launch later in 2025 and will be available for users in the US in the beginning, the components of the deal are interesting:

• Real-Time Transactions: X Money’s integration with Visa Direct facilitates instant funding and money transfers within the application.
• Digital Wallet Integration: Embedding the digital wallet within X will be a game changer and a step closer to making it the super app. The digital wallet integration allows a frictionless payment experience that is fully integrated with the social media interface. This means that financial transactions become a native part of user interactions on the platform.
• Regulatory Compliance: X Payments LLC is the financial arm behind the new service. The company has secured money transmitter licenses in multiple states (reportedly in over 40 jurisdictions) and is registered with FinCEN.
• Strategic Partner Selection: With Visa’s payment processing technology, global reach, and credibility, X benefits from Visa’s technical and reputational momentum. In the past, X has faced monetization and user engagement since its acquisition and rebranding, but all that could change with this partnership.

The regulatory constraints remain uncertain for tech looking to advance into financial services, including X. In 2024, the Consumer Financial Protection Bureau (CFPB) introduced a rule targeting digital wallet providers processing more than 50 million transactions annually. The regulations include all aspects, including compliance with federal consumer financial protection laws by securing consumer data, preventing fraud, and ensuring that errors or fraudulent transactions are promptly resolved.

Under these regulations, providers must also have robust recordkeeping and reporting systems for regulatory oversight and must disclose fees and transaction terms to consumers.

All in all, large non-banking entities were brought to their knees under scrutiny, similar to that of traditional banks. Now, after Trump’s win, the CFPB’s future is not as straightforward as the current administration and Congress (including Elon Musk) were before regulations and sanctions withheld the success of businesses in the US. Earlier, Elon Musk, appointed to lead the Department of Government Efficiency (DOGE), strongly desires to eliminate numerous federal regulations.

On the other hand, Visa has also seen significant progress with its Visa Direct platform. Visa also recently revealed that starting April 2025, Visa Direct will facilitate funds to be available in US bank accounts within one minute. It will allow consumers, businesses, and government organizations to transfer money instantly to bank accounts associated with eligible debit cards (the same model as X recently announced).  Last year’s October report of Visa revealed that transactions via Visa Direct increased by 38% in the fiscal fourth quarter, reaching 2.8 billion, and the total transactions for the year approached 10 billion.

After reviewing all this, X is taking considerate steps in this sector and Visa’s partnership. This is the primary reason for X proactively securing money transmitter licenses in 40 states and the District of Columbia, laying the groundwork for widespread fund transfers across central US states, if not countrywide.

As of mid-2024, X reported having over 200 million global daily active users. This substantial user base provides a significant opportunity for X to market its digital wallet and payment tools. Visa’s financials reveal mid-single-digit percentage growth in debit card payment volumes in the US, with the total number of debit cards growing by 8% year-over-year worldwide. This indicates a potential for significant cross-pollination between X’s user base and Visa’s services.

Neobanks have been striving to establish themselves as more than just providers of online debit cards. For instance, SoFi has seen strength in consumers setting up direct deposit accounts. Venmo’s growth in the most recently reported quarter was 8%, as measured by Total Payment Volume (TPV).

Elon Musk has long articulated a vision of transforming X into an “everything app” reminiscent of China’s WeChat—a single platform offering a wide range of services, including messaging, video streaming, social networking, and financial services. Integrating X Money into the platform is a critical component of this vision. Historically, Musk’s early venture, X.com, eventually evolved into PayPal, setting the stage for his continued interest in the payments space. Musk is reviving that original ambition on a grander scale with X Money.

Neobanks are digital-only banks that offer financial services primarily through mobile and web applications, bypassing the need for physical branches. They have emerged as a formidable force in the banking sector by providing streamlined, user-friendly experiences, lower fees, and innovative features that cater to the digital age. Neobanks like Revolut, N26, and Monzo have attracted millions of users globally, capitalizing on the shift towards mobile-first banking solutions.

European neobanks have been wildly successful. For example, Revolut has grown to serve over 50 million customers worldwide, offering services ranging from multi-currency accounts to cryptocurrency trading. N26 and Bunq have also made significant inroads in their respective markets, focusing on user-centric designs and digital-first strategies. These digital-only banks set new benchmarks for customer acquisition, engagement, and overall financial innovation.

About Visa

Visa Inc., established in 1958 as BankAmericard by Bank of America, is a global leader in digital payments. In San Francisco, California, Visa facilitates electronic transactions among consumers, merchants, financial institutions, and governments across more than 200 countries and territories. The company aims to link the world with the most dependable, convenient, innovative, and secure payment network, empowering individuals, businesses, and economies to prosper.

Visa’s advanced transaction processing network, VisaNet, enables authorization, clearing, and settlement of payment transactions. The company offers a range of products, including credit, debit, and prepaid cards. It has expanded its services to digital wallets and real-time payments through platforms like Visa Direct. In 2023, Visa’s network facilitated 276 billion transactions, totaling $15 trillion. Visa continues to innovate in the payments industry, leveraging technologies such as artificial intelligence to enhance online shopping experiences and loyalty programs.

About X

X Corp., formerly known as Twitter, is an American technology company headquartered in Bastrop, Texas. Founded by Elon Musk in 2023 as the successor to Twitter, Inc., X Corp. owns and operates the social networking platform X. The company has announced plans to expand its offerings beyond social media, aiming to transform X into an “everything app” that integrates various services such as messaging, streaming, and payments. In line with this vision, X Corp. has partnered with Visa to introduce a real-time payment service named “X Money Account,” featuring an in-platform digital wallet and peer-to-peer payments. This service is expected to launch later in 2025, initially available to U.S. users.

X Corp. has undergone significant organizational changes since its rebranding and under Musk’s leadership. In August 2024, the company announced the relocation of its headquarters from San Francisco, California, to Austin, Texas, citing operational challenges in San Francisco as a primary reason for the move. Additionally, X Corp. has been involved in legal disputes, including a lawsuit alleging that major brands participated in a boycott that violated antitrust laws, leading to a decline in the company’s advertising revenue. Despite these challenges, X Corp. continues to pursue its goal of evolving X into a comprehensive platform offering its users a wide range of services.

Conclusion

The partnership between X and Visa signals a strategic move that positions X Money as a serious player in the digital payments industry. With Visa’s global reach and payment infrastructure, X gains a competitive edge that could help it integrate financial services directly into its social media ecosystem. This could challenge traditional banks and neobanks, particularly in peer-to-peer transactions and digital wallets.

However, regulatory scrutiny remains a key factor in determining X Money’s success. The evolving stance of the Consumer Financial Protection Bureau (CFPB) and the broader regulatory environment in the U.S. will significantly shape how non-bank financial services operate. While Elon Musk’s government role suggests a push for deregulation, the financial industry remains subject to oversight that could impact X Money’s long-term viability.

At the same time, Visa’s advancements with Visa Direct highlight how real-time payment services are becoming a critical component of the financial landscape. X’s large user base gives it an advantage in adoption, but competing against established neobanks and digital-first financial institutions will require more than seamless integration. Trust, security, and regulatory compliance will be as important as convenience and user experience.

As X continues to evolve into a multi-service platform, the success of X Money will depend on how effectively it balances innovation with regulatory challenges, user trust, and financial sustainability. Whether it can rival or surpass neobanks in the digital payments space remains to be seen, but this partnership with Visa is a step toward that goal.