X (formerly Twitter), has made a significant move into the financial services sector by partnering with Visa
Elon Musk’s social media platform, X (formerly Twitter), has made a significant move into the financial services sector by partnering with Visa to launch the X Money Account, a digital wallet and peer-to-peer payment service. This announcement was made by X CEO Linda Yaccarino on January 28, 2025, and is seen as a critical step towards Musk’s vision of transforming X into an “everything app” that integrates various services, including financial transactions.
Key Features of X Money Account
Digital Wallet: Users will be able to send, receive, and transfer money directly within the platform.
Peer-to-Peer Payments: The service allows users to link their debit cards for seamless peer-to-peer transactions.
Instant Transfers: Users can transfer funds instantly between their bank accounts and the X Money digital wallet, akin to services like Zelle or Venmo.
Yaccarino emphasized that this partnership with Visa is just the beginning of many announcements regarding X Money in 2025. The integration of Visa Direct will facilitate real-time fund transfers, enhancing user experience by making transactions secure and instantaneous.
Musk’s foray into digital payments is not new; he co-founded X.com in 1999, which later became PayPal after merging with Confinity. This historical context underlines Musk’s longstanding interest in financial services. The current initiative aims to eliminate the need for traditional banking systems by allowing users to manage their financial activities directly through X.
The launch of the X Money Account is expected in the first quarter of 2025, with further partnerships likely to follow as Musk continues to expand X’s capabilities into a comprehensive financial ecosystem.
Confinity, the precursor to PayPal, was founded in December 1998 by Max Levchin, Peter Thiel, and Luke Nosek. Initially named Fieldlink, the company aimed to develop security software for handheld devices but soon pivoted to focus on digital wallets due to the growing demand for online payment solutions. The first version of PayPal was launched in 1999, marking a significant shift in the company’s direction.
In March 2000, Confinity merged with X.com, an online financial services company founded by Elon Musk in 1999. This merger combined Confinity’s payment technology with X.com’s broader banking services. However, internal disagreements led to Musk being replaced as CEO later that year. By 2001, the company rebranded itself as PayPal, reflecting its primary product and market focus.
PayPal’s growth accelerated rapidly, culminating in its Initial Public Offering (IPO) on February 14, 2002. Shortly after, eBay acquired PayPal for approximately $1.5 billion in stock on July 8, 2002. This acquisition significantly impacted the tech landscape, as many former PayPal employees went on to establish influential companies in Silicon Valley, forming what is often referred to as the “PayPal Mafia”—a network of successful entrepreneurs who have shaped the modern tech industry.
