Elon Musk launches bank-like X Money, with 'X'-branded debit cards
FILE-A portrait picture of Elon Musk photographed and the X, former Twitter, logo are screened for an illustration photo. (Photo by Beata Zawrzel/NurPhoto via Getty Images)
Elon Musk's social media company X has launched its own bank account-like product where users can transfer money to one another.
What is X Money?
Dig deeper:
X Money is a service and not a new bank and utilizes technology and banking services provided by Cross River Bank, and branding that act as the core asset for X Money.
The Associated Press reported that it's typical for new financial organizations to use a traditional bank's system to launch its services.
RELATED: French prosecutors pursue charges against Elon Musk, X over child abuse content allegations
X Money is invite only, and users will receive a "X"-branded Visa debit card that can be used at any ATM.
Users of X will be able to send money to other X users in real-time, the company told the AP. Right now, invitations are only available to X's paying members.
X Money is offering a 6% yield on deposits and 3% cashback on eligible purchases. According to the AP, if you want to earn a 6% yield, a consumer will need to deposit roughly $1,000 into an account.
Customers would also have to be signed up for X's premium services, which is $8 monthly. Moreover, it would require at least a deposit of $1,600 to cover X's premium service cost.
The launch of X Money comes amid a competitive marketplace featuring PayPal's Venmo money transfer service and other money transfer services like Zelle and Cash App.
The Source: Information for this story was provided by The Associated Press. This story was reported from Washington, D.C.