Move aside Venmo and Cash App, there’s a new player in town. Social media giant X has recently announced its plans to launch its very own digital wallet service. According to a post from Elon Musk on March 10th, X Money will be available to select members of the public starting in April.
The service, dubbed “X Money,” is expected to function similarly to other digital wallets. Users will have the ability to fund their X Wallet from a bank account and send/receive payments to and from other users. Reports suggest that users may even earn a generous 6% APY on their balance, along with cash-back debit card rewards.
Despite the upcoming launch, there are still many unknowns surrounding X Money. Details on how users can earn interest or rewards with their accounts have yet to be revealed. X Money is currently in beta and not accessible to the general public. According to former X CEO Linda Yaccarino, the service will offer features akin to popular platforms like Venmo or PayPal.
As an X Money user, you can expect to have a digital wallet that can be funded by linking your bank account. This enables you to instantly transfer funds to other users, receive payments, and withdraw your balance to your bank account. Beta versions of X Money have shown additional features such as setting up direct deposits, earning cash back on eligible debit card purchases, and earning 6% interest on wallet balances.
It’s important to note that X Money is not a bank account but a digital wallet partnered with Cross River Bank to handle deposits and payments. Beta users currently enjoy FDIC insurance up to $250,000, ensuring that their funds are protected by the U.S. government.
While the beta version of X Money offers a 6% APY on funds held in the account, specifics regarding minimum balance requirements or account terms are still unclear. As the product expands to the public, interest rates may fluctuate, and the safety of user funds remains a concern.
Elon Musk has hinted at a phased rollout of X Money, with early access expected to launch in April. However, there are uncertainties regarding the safety of transactions and protection against data breaches for users’ linked bank accounts.
It’s uncertain whether users with suspended or banned accounts on X will lose access to their X wallets. The comparison between X Money and high-yield savings accounts (HYSAs) is challenging without disclosed terms and conditions.
While X Money may offer competitive interest rates and cash back rewards, it’s essential to explore alternative options, such as HYSAs offered by reputable financial institutions. These accounts provide a safe and reliable way to earn interest on your savings until more information about X Money becomes available.
