Elon Musk’s social media giant X has struck a deal with Visa (NYSE: V) to launch a digital wallet with secure funds transfer and peer-to-peer payment service which will be available through the platform.
Visa is the largest United States credit card network and will be the first to partner with the platform for the new feature called the X Money Account.
X’s CEO Linda Yaccarino made the announcement via the social platform on Tuesday saying “Another milestone for the Everything App... First of many big announcements about X Money this year. LFG.”
In 2022 when Musk purchased X, formerly known as Twitter, he said the US$44 billion acquisition of the social platform was a step towards creating an “everything app”.
This announcement is the first major move forward for X in creating what is also known as a super app - similar to China’s WeChat - that functions as a one-stop shop for all of a user's mobile needs.
The platform currently makes most of its revenue from advertising, however, billionaire owner Musk has long voiced plans to make X more independent from advertising which may now be possible through the revenue generated by payment processing.
X has previously allowed users to add their crypto wallet addresses and receive payments through the app.
However, progress in incorporating banking into the app has been slow due to the lengthy process of acquiring proper licensing in the U.S.
According to reports from CNBC, Musk has been applying for financial licensing for X for over a year, with X Payments LLC now licensed in 41 U.S. states and registered with the Financial Crimes Enforcement Network.
The service is expected to launch in the first quarter, with more deals with financial institutions likely to be announced.
Visa also announced the deal via X but is yet to make any further comments.
At the time of writing this, Visa Inc (NYSE: V) stock was trading at US$334.48, easing 0.018% from Tuesday’s close of $334.54. Visa Inc’s market cap stands at US$656 billion.
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