The social network “X”, which Elon Musk, a billionaire who bought it for $44 billion dollars in 2022, is now expanding its services into the financial sector.
The social network announced on Tuesday that it had teamed with Visa Inc., the biggest US credit card company, to create a digital wallet, enabling peer-to-peer payment without external institutions.
In a blog post published today, Chief Executive Linda Yaccarino referred to the initiative as the “X Money Account”.
Visa Direct allows for secure + instant funding to your X Wallet via Visa Direct. Connects with your debit card allowing P2P payments Option to instantly… Visa Direct allows for instant + secure funding of your X Wallet. Connects with your debit card allowing…
What X Money set out to achieve
The new Visa deal will make it easier for X users to transfer money between their digital bank accounts and traditional ones.
Venmo, for example, allows instant payments between peers.
This announcement marks X’s first foray into the financial sector following months of anticipation, after Elon Musk revealed his plans to turn X into an “everything” app.
By the end of the quarter, X Money Accounts will be available.
Anonymous sources confirmed on Tuesday that social media app, Facebook could choose in the future to add other partners and expand into financial services.
X Money allows creators to receive payments directly from their customers without the need for third-party apps.
We are excited to be partnering with @XMoney for the launch of X Money Account. Visa Direct allows US X Money Account holders to transfer and fund money instantly with their debit cards.
Visa Inc. to release earnings this week
Visa Inc. partnered up with Musk’s X just days before its first-quarter financial results were due to be reported.
It is expected to make $2.66 per share, compared with $2.44 a year earlier.
Jeff Cantwell, a Seaport analyst, believes that the new company is a superior choice than its rival Mastercard.
Cantwell says that Visa’s stock underperformed the market over the last ten years, but now it looks well positioned to break out of this trend by 2025. Cantwell upgraded V to “buy”, while downgrading Mastercard.
Visa shares pay out a current dividend yield of 0.70 %, making them more appealing to buy at the time of writing.
Does Visa stock make sense to buy on Tuesday?
Jeff Cantwell believes Visa Inc. will benefit from a greater exposure in the US this year.
In a report, he said that Visa was the preferred card this year due to its US-based presence and because of Visa’s relatively low multiple.
Seaport Research’s analyst believes Visa Investor Day will also help to drive up its share price in February.
Visa’s stock could rise in value by 2025 if he predicts strong demand for its services. He also cited incentives for clients as one of the tailwinds.
The Visa share price is up more than 30% in the last six months.
This article Elon Musk’s X partners with Visa to launch a digital wallet: Here’s What We Know may change as new information becomes available.
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