Elon Musk's X is closer to the "WeChat dream"! Collaborating with the largest credit card network in the United States, Visa, to enter the financial services sector

Elon Musk's social media platform X seems to be one step closer to the ideal of "becoming WeChat."

On Tuesday, January 28, X platform CEO Linda Yaccarino posted that they will launch an "everything app" called X Money later this year, with Visa, the largest credit card network in the United States, as the first partner.

Specifically, through Visa's cross-border payment channel Visa Direct, X platform users can instantly fund their X Money digital wallets from traditional bank accounts, link debit cards for peer-to-peer payments, and make instant withdrawals to bank accounts.

These features are similar to Zelle, which provides electronic transfer services between bank and credit union accounts in the U.S., and Venmo, a mobile payment service under PayPal.

Some analysts point out that this is the first concrete step for X to create a financial ecosystem for its social media platform.

When Musk acquired Twitter (later renamed X) in 2022, he stated that the $44 billion acquisition was aimed at creating an "everything app," and he later clarified that the platform would enable users to manage their "entire financial world." In November 2022, Musk told advertisers on X that the upcoming payment product could ultimately offer certain banking functions, such as high-yield money market accounts.

Recent reports indicate that in the U.S., businesses must navigate a more complex regulatory environment to obtain money service business status. For over a year, Musk has been applying for these licenses for X. Currently, X's payment subsidiary X Payments LLC has obtained "money transmitter" licenses in 41 states and is registered with the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury.

According to sources familiar with the matter, the X Money service is expected to launch in the first quarter of this year, potentially reaching similar agreements with more financial partners. One of the first use cases is to allow content creators on X to accept payments and store funds without external agencies, as well as facilitate mutual transfers and payments between X platform users.

The CEO of X also stated that the partnership with Visa is a "milestone for this everything app" and will be "the first of many significant announcements regarding X Money this year."

Additionally, some analysts suggest that increasing potential revenue sources from processing financial payments can help protect X from the impact of future declines in advertising spending, especially since under Musk's leadership, X's advertising revenue has significantly decreased. Last weekend, reports indicated that Musk recently told employees that X platform's "user growth has stagnated, revenue is unsatisfactory, and it is barely breaking even." According to reports, Musk has always been "envious" of WeChat, a "one-stop super app" that integrates various functions such as social networking, communication, video chatting, messaging, streaming, entertainment, shopping, and payment.

When he founded his startup X.com in the 1990s, Musk developed a strong interest in such a one-stop platform. He later attempted to push PayPal to diversify and become a "universal application," but was rejected by the company's CEO Peter Thiel and other executives.

However, some analysts warn that although Musk is one step closer to "realizing his dream," competition in the payment sector has become more intense. Many companies are making similar efforts to expand their platform offerings. Other social media giants, such as Meta, the parent company of Facebook, have also added shopping, gaming, and even dating features in an effort to complete a one-stop transformation. How X's universal application will develop remains to be seen.

In addition, other powerful American tech giants attempting to fend off potential competitive threats may also turn to attack such super apps. For example, U.S. regulators have accused Apple of illegally leveraging its market power since 2017 to block so-called super apps from entering the iPhone, citing concerns that it would reduce consumer use of the iPhone's own software and services, including payment processing