The X platform now offers an interest-bearing deposit account and instant payments, marking a first for an American social network.
The social network X launched on Monday a paid account offer as well as an over-the-counter payment service. This initiative is part of the strategy to transform the platform, formerly known as Twitter, into an all-purpose application, according to the wishes of its controlling shareholder, Elon Musk.
The product, free but reserved for holders of an X Premium (paid) account in the United States, includes a Visa withdrawal card and provides an interest rate of up to 6%, according to a press release. Holders of a deposit account on X will also have the possibility of making an instant and free payment to another user of the platform.
Banking security and reinforced guarantees
The accounts are technically hosted by Cross River Bank, a New Jersey bank specializing in fintech services. The establishment is registered with the American banking regulator FDIC and, as such, benefits from a guarantee of its clients’ deposits of up to $250,000 each. Thanks to a mechanism that distributes funds between several member banks of the same network, X can even guarantee up to $10 million in deposits per user.
Cross River presents the account and its features as a first for a social network in the United States.
Since his acquisition of Twitter (now X) in October 2022, Elon Musk aims to transform it into an all-purpose application based on the model of Chinese platforms such as WeChat, from the Tencent group.
Purchases and payments on Facebook, Snapchat and TikTok, particularly for online sales and content monetization, go through PayPal or its subsidiary Hyperwallet, or through a traditional bank account, which is not part of Meta’s offering. The messaging services of Meta, WhatsApp and Messenger, which are not strictly speaking social networks, include an over-the-counter payment system.
