Elon Musk’s X to Launch Financial Services with Visa Partnership

Elon Musk’s X, formerly known as Twitter, is on the verge of a significant transformation, aiming to become more than just a social media platform. The company’s CEO, Linda Yaccarino, has confirmed that users will soon be able to trade and invest directly on X, aligning with Musk’s vision of creating an all-encompassing “everything app.”

At the core of this financial evolution is X Money, a new digital wallet and peer-to-peer payment service set to launch later this year in collaboration with Visa. Initially available in the U.S., X Money will enable users to tip creators, purchase merchandise, store value, and execute trades or investments without leaving the app. This integration aims to allow users to manage their entire financial life on X, from splitting bills to making investments, marking a substantial step in Musk’s plan to merge social interaction with financial utility.

Despite the excitement surrounding these new features, X faces several challenges. The platform’s shift into finance could attract regulatory scrutiny regarding licensing, compliance, and financial oversight. Additionally, there is ongoing tension in the advertising space. While Yaccarino claims that 96% of former advertisers have returned since Musk’s takeover in 2022, skepticism persists. The company is currently involved in a federal antitrust lawsuit against the Global Alliance for Responsible Media, accusing it of organizing a boycott disguised as a safety initiative. Following the lawsuit, X has removed companies like Unilever from the complaint after they resumed advertising on the platform in October. Some advertisers remain hesitant to fully return to X, citing concerns over toxic content and doubts about the platform meeting its goals. There are reports that some advertisers felt pressured to resume ad spending, with warnings of potential lawsuits if they didn’t comply, amid unease over Elon Musk’s close ties to Donald Trump. X continues to deny allegations of strong-arming brands into advertising.

Adding to the complexity, Elon Musk recently sold X to his AI venture xAI in an $80 billion all-stock deal that also transferred X’s $12 billion debt. This move has raised legal and financial concerns, especially after a judge declined to dismiss a shareholder lawsuit tied to Musk’s original acquisition. Critics like Adam Cochran argue that Musk may have overvalued xAI to shift liabilities and data under the AI firm, calling the transaction “insanely dumb.” However, with revenue projected to rise to $2.3 billion in 2025, X’s transformation is well underway.

In summary, Elon Musk’s X is preparing to offer a range of financial services, including trading, investing, and payments, in partnership with Visa. This move is part of a broader strategy to transform X into a comprehensive "super app," providing users with a seamless and convenient way to manage their financial lives. The introduction of these services is expected to enhance user engagement and attract a broader user base, solidifying X's position as a leading social media and financial platform.