Elon Musk’s X to launch its first digital wallet in partnership with Visa

Elon Musk-owned social media platform X is collaborating with Visa to introduce a real-time payment system, marking progress toward Musk’s long-standing goal of transforming the platform into an “everything app.”

Visa has been announced as the first partner for the platform’s upcoming “X Money Account” service, expected to launch later this year, according to a post from X CEO Linda Yaccarino on Tuesday. The service will enable in-platform digital wallets and peer-to-peer payments linked to users’ debit cards, with an option to transfer funds directly to bank accounts.

In a post on X, Yaccarino said, “Another milestone for the Everything App: @Visa is our first partner for the @XMoney Account, which will debut later this year. [It] allows for secure + instant funding to your X Wallet via Visa Direct. [It] connects to your debit card, allowing P2P payments. [There is an] option to instantly transfer funds to your bank account. [This is the] first of many big announcements about X Money this year.”

In a separate announcement on X, Visa confirmed that these services will operate via Visa Direct, the company’s instant money transfer solution. Initially, X Money Account users in the US will have access to the feature. However, it remains unclear whether the service will expand internationally or if additional payment partners will be introduced. A specific US launch date has not yet been provided.

Yaccarino described the partnership with Visa as a significant step toward building the “Everything App” and hinted at more major announcements related to X Money later this year.

Elon Musk’s longstanding ‘super app’ aspirations

The idea of X evolving into a multifunctional platform has been discussed for some time. Even before acquiring the platform for $44 billion in 2022, Musk expressed a desire to develop a super app similar to China’s WeChat, which integrates messaging, video, streaming, and payments into a single service.

Musk’s interest in an all-in-one platform dates back to the late 1990s when he founded X.com, an online banking startup that later merged into what became PayPal. Although he advocated for PayPal’s expansion into broader financial services, his vision was not shared by then-CEO Peter Thiel and other executives. PayPal was eventually sold to eBay in 2002 for $1.5 billion, a deal that provided Musk with capital to invest in SpaceX and Tesla.

Today’s digital landscape is significantly more competitive, with multiple companies enhancing their platforms with expanded functionalities. Social media firms like Meta, the parent company of Facebook, have already integrated shopping, gaming, and dating features. Consumers now rely on various platforms for communication, financial transactions, and entertainment, making it uncertain how X’s super app aspirations will resonate. Since Musk took over in 2022, the platform has faced backlash from users and advertisers due to concerns about rising hate speech and misinformation.

Regulatory and competitive hurdles

Furthermore, X’s ambitions may put it at odds with major tech competitors. US regulators have previously accused Apple of leveraging its market dominance to block the emergence of super apps on its iPhone ecosystem.

In an antitrust lawsuit filed last year, the US Justice Department claimed to have evidence suggesting Apple sought to limit the influence of super apps, fearing they could reduce reliance on the iPhone’s native software and services, including its payment systems. Apple has denied the allegations and is currently seeking to have the case dismissed in federal court in New Jersey.