“X” – the social network billionaire Elon Musk bought for $44 billion in 2022 is finally expanding into financial services.
On Tuesday, the social platform said it has teamed up with the largest US credit card network, Visa Inc, to launch a digital wallet and enable peer-to-peer payments without the need for external institutions.
Chief executive Linda Yaccarino called the new initiative the “X Money Account” in a post today.
Another milestone for the Everything App: @Visa is our first partner for the @XMoney Account, which will debut later this year. 💰Allows for secure + instant funding to your X Wallet via Visa Direct 🪪 Connects to your debit card allowing P2P payments 🏦 Option to instantly…
What X Money has set out to accomplish
X users will find it more convenient to make transactions between their digital wallets and conventional bank accounts following the platform’s new deal with Visa.
Additionally, they’ll now be able to enjoy instant peer-to-peer payments with the likes of Venmo.
The announcement this morning marks X’s first push into financial services following months of anticipation after billionaire Elon Musk first revealed plans to transform the social network into an “everything” app.
X Money Account will go live by the end of this quarter.
On Tuesday, anonymous sources also confirmed that the social app could eventually choose to onboard other partners to expand its footprint in financial services.
Note that X Money will enable creators to accept payments without having to rely on third-party applications.
We’re excited to partner with @XMoney on the launch of X Money Account. Visa Direct will make it possible for US X Money Account users to fund and transfer money in real-time with their debit card.
Visa Inc to report earnings later this week
Visa Inc. partnered with Musk’s X only days before it’s scheduled to report its financial results for the first quarter.
The consensus is for it to earn $2.66 a share in Q1 versus $2.44 per share a year ago.
Ahead of the company’s release, Seaport analyst Jeff Cantwell sees it as a better pick than rival Mastercard.
Visa stock has underperformed its competitor over the past ten years – but it now looks strongly positioned to finally pull out of that trend in 2025, according to Cantwell. He upgraded “V” in a recent note to “buy” while simultaneously downgrading Mastercard to “neutral”.
Visa shares currently pay a dividend yield of 0.70% which makes them all the more attractive to own at writing.
Is Visa stock worth buying on Tuesday?
Jeff Cantwell expects Visa Inc. to benefit this year on the back of bigger exposure to the US.
“Whereas last year we liked Mastercard more on a relative basis, this year we prefer Visa’s US heavy footprint and also believe that its relatively lower multiple makes the risk/reward more attractive,” he told clients in a recent report.
The Seaport Research analyst sees Visa’s investor day to help drive its share price up as well in February.
He projected strong demand for the company’s value-added services and cited client incentives among other tailwinds that could unlock the upside for Visa stock in 2025.
Visa stock price has already rallied more than 30% over the past six months.
The post Elon Musk’s X teams up with Visa to launch digital wallet: here’s what we know appeared first on Invezz
