X Money Launch Plans for Limited Release This Year

Despite facing setbacks in the initial approval process for its ambitious payments initiative, Elon Musk’s vision for transforming X into a comprehensive payments platform is gaining momentum. The project, now referred to as “X Money” rather than the earlier term “X Payments”, continues to advance as the company refines its strategy.

In a recent announcement celebrating the new year, X CEO Linda Yaccarino shared that X Money is set to be among several exciting launches slated for the upcoming months, indicating a sustained commitment to evolving the platform.

While skepticism surrounds the claim of connecting users in unprecedented ways, the emphasis on X Money signifies the company’s determination to move forward, even if it means deviating from Musk’s original timeline for a 2024 launch.

A significant factor contributing to the delay is X’s struggle to secure a money transmitter license in New York, a crucial market identified by Musk for the initial rollout of its payment services.

So far, X has successfully acquired payment transmitter licenses in 38 U.S. states, but the company withdrew its application in New York last year following a legal challenge that raised concerns regarding the “fitness and character” of the platform to operate as a payment service. legal filing was made in opposition to its payments push, which questioned the “fitness and character” of X to hold such authority.

The primary issue highlighted in the legal filing is X’s “troubling and deep ties” to the Kingdom of Saudi Arabia, particularly noting that Saudi Crown Prince Mohammed bin Salman is an investor in Musk’s X project. The filing alleges that the Kingdom of Saudi Arabia has a notorious history of human rights abuses, which the platform purportedly plays a role in enabling.

This situation has seemingly hindered X’s ability to obtain necessary approvals across all U.S. states. Nevertheless, new insights derived from the back-end code of the app indicate that X is still moving forward with plans for X Money, aiming to launch it in select U.S. states initially.

Recent code snippets reveal that X is incorporating notes regarding the availability of X Money “in your state,” suggesting a strategy focused on regional rollouts rather than a nationwide launch as the company addresses concerns in states that have yet to approve the service.

Implementing a regional strategy would allow X to expedite the project’s initiation, although the limited scope will significantly constrain the user base. This is particularly pertinent as the company contemplates potential international expansions, where Musk’s controversial political views may pose substantial regulatory hurdles for securing payment licenses.

Thus, while X Money is on the horizon, its availability is likely confined to 38 U.S. states initially. The possibility of expanding to other regions remains uncertain, and international rollout does not seem to be a priority at this stage.

This limitation could significantly hinder Musk’s vision for an “everything app,” especially considering that the demographic most likely to embrace such services may reside outside the United States.

To understand Musk’s vision better, it’s essential to note that his concept of an “everything app” draws inspiration from the success of WeChat in China, where users rely on the app for a multitude of transactions, effectively using it as their digital identity. In many instances, Chinese citizens opt for WeChat over credit cards, enjoying enhanced convenience and establishing the platform as an integral part of daily life.

Back in 2000, during his foray into the digital payments realm, Musk proposed an “everything app” plan as a future roadmap for developing PayPal. Although the PayPal team chose not to pursue this vision, it has remained a point of focus for Musk, who is committed to realizing the transformative potential of this concept in the payments and banking industry.

However, it’s crucial to acknowledge that similar attempts have not yielded success for other companies.

For instance, Meta has endeavored to replicate WeChat’s success by establishing Messenger as a transaction framework, but these efforts have not resonated with Western consumers. Moreover, Meta’s attempts to introduce payments on WhatsApp in emerging markets have faced substantial regulatory pushback.

Given these challenges, the outlook for Musk’s vision remains uncertain, especially as broader skepticism about Musk and the X platform could further limit opportunities, compounded by existing licensing restrictions.

Nonetheless, if Musk and his team can facilitate fee-free, simple transactions within the app, there may still be a viable opportunity for X Money to carve out a niche in the market.

However, I suspect the overall scope of this initiative will be far more limited than Musk envisions, even if full approval can be achieved in the various regions, which remains a challenge if Musk’s actions continue to raise concerns among regulatory groups.

Ultimately, you may gain access to X Money in 2025, but it’s uncertain.

Regardless, I doubt this development will significantly impact the majority of users.