Twitter, now X. Corp, and Tesla CEO Elon Musk poses prior to his talks with French President Emmanuel Macron, May 15, 2023, at the Elysee Palace in Paris. /Michel Euler, Pool, File)
WASHINGTON (7News) —Elon Musk’s new money app called X Money rolled out this summer. This brings Musk closer to his goal of creating an all-in-one financial app inside his “X” social mediaplatform.
Users can send or receive money to and from other X Money users. Users are drawn to its initial offer of a 6% yield on deposits and 3% cashback on eligible purchases. There are no ATM or foreign transaction fees. And users get a Visacard.
“It comes down to two things: economics and convenience…. if you’re in the platform and you want to move money to somebody else in the platform, and all you have to do is push a button to do it, it’s easy,” Ron Shevlin, banking industry expert with Cornerstone Advisors, tells 7News.
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Right now, X Money is available to U-S X Premium and Premium Plus users. These are paid tiers. Premium service costs at least $8 a month, and Premium Plus, $16 a month.
X Money is available in 41 states.
It is not accepted in New York or Massachusetts, where it does not have moneylicenses.
X Money partners with Cross River Bank of New Jersey. The bank provides the regulatory framework. X Money deposits are FDICinsured up to $10 million dollars for top-tier subscribers. The transactionshappen in real time. The phased rollout and high-yield promotional rates have drawn scrutiny from financialregulators.
“They could offer you that 6% for the first month, and then tell you in the second month we’re taking it down to 1 1/2 percent,” Shevlin said.
Right now, the X platform has 570 million monthly active users. The company has not disclosed how many are X Money users. The app only operates in the U.S.
Early reviews are mixed. Some like it, calling it “revolutionary.” Others are worried about security and regulations.
