As Elon Musk nears his goal of launching X Money, the banking and payments platform built inside X, early access users reported competitive benefits.
The users who have tested the service highlighted perks such as 3% cash back on eligible purchases and 6% interest on cash savings, nearly 15 times the national average, reported Bloomberg on Sunday. The interest rate on cash savings would challenge rivals like SoFi Technologies Inc. (NASDAQ:SOFI), Block Inc. (NYSE:XYZ) and LendingClub Corp (NYSE:LC).
Musk’s X Money is also likely to offer peer-to-peer transfers, an AI concierge that tracks spending habits based on past transactions and a metal Visa (NYSE:V) debit card with a user's X handle, according to the publication.
According to the early users, creators who already receive money through X would be transferred from Stripe to X Money as their primary payment platform. Some users are also testing transferring payments through the social media platform’s chat feature or directly through the profiles.
X did not immediately respond to Benzinga’s request for comments.
Regulatory Concerns Over X Money
In early March, Musk announced the rollout of X Money for early public access in April. A few days later, X user Josh Wood shared a video on X showing himself using a metal debit card linked to the platform, calling it "recorded for posterity." He thanked Musk for beta access. The card displayed his full name and X handle, a feature previously promoted by Musk.
Notably, Musk’s fintech initiative is yet to receive payment licenses from several states, including New York. Moreover, other details regarding the complete set of features and pricing remain unclear.
Sen. Elizabeth Warren (D-Mass.), the Senate Banking Committee ranking member, is questioning Elon Musk's suitability to run X Money, raising concerns about potential stablecoin plans, user data surveillance, and safeguards against fraud and illicit activity.
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