Earlier today, Tuesday, Elon Musk‘s social media platform X announced the debut of Visa‘s peer-to-peer payment services and digital wallet.
In a post on the site, CEO Linda Yaccarino said that X has partnered with Visa, the biggest credit card network in the United States, to be the first partner for what it is referring to as the X Money Account.
According to her, Visa will allow X users to send money between their digital wallet and traditional and regular bank accounts as well as conduct instantaneous peer-to-peer payments using Venmo or Zelle, as reported by CNBC.
It’s the first tangible step taken by X to establish a financial environment for the social media platform, which was known as Twitter before Musk’s 2022 acquisition. Musk claimed at the time that the $44 billion purchase was a means of developing a “everything app.” Later, he claimed that users will be able to conduct their “entire financial world” on the site.
In the first quarter, the X Money service is anticipated to start, and other banking collaborations are probably in the works. Allowing artists on X to collect payments and hold money without the involvement of outside institutions is one of the service’s early use cases.
Under Jack Dorsey’s leadership, Twitter introduced a bitcoin tipping function in 2021 that enabled users enter their crypto wallet addresses and get paid in the biggest digital currency in the world.
However, obtaining U.S. money service company registration necessitated negotiating a far more intricate regulatory environment.
Musk has been requesting these rights for X for more than a year. On its website, X Payments LLC declares that it is registered with the Financial Crimes Enforcement Network, or FinCEN, and has licenses in 41 states.
According to a person with knowledge of the matter, the X Money service is anticipated to begin in the first quarter, and agreements with more financial partners are possible.
This individual, who spoke on condition of anonymity to discuss internal concerns, stated that one of the initial use cases for X Money is to enable creators on the platform to receive payments and keep cash without the need for outside institutions.
In a meeting that was publicly shown on Spaces in November 2022, Musk hinted to the platform’s advertisers that its upcoming payments product would eventually provide specific banking services, including a high-yield money market account.
No one on the Visa representatives did not comment on the situation.
Elon Musk was sued with the US Securities and Exchange Commission (SEC) earlier this month for not disclosing his 2022 acquisition of a 5% share in Twitter (now X) in a timely manner. According to Finance Magnates, Musk had ten days from March 24, 2022, to declare the transaction in accordance with SEC regulations.
He broke federal law by disclosing it 11 days late on April 4, 2022. According to the SEC, Musk benefited while investors suffered because of the artificially low stock price maintained by this delayed announcement. Although the sum is not stated, the SEC is requesting fines. Musk’s attorney deemed the matter without merit.
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