NEW YORK —

Elon Musk’s social media firm X, previously often known as Twitter, launched its personal financial institution account-like product the place customers can ship cash to at least one one other.

The service, often known as X Cash, will not be a brand new financial institution. X Cash is utilizing know-how and banking companies supplied by Cross River Financial institution, and branding that spine as X Cash. It’s common for brand spanking new monetary corporations to make use of a standard financial institution’s spine to launch its companies, as chartering a brand new financial institution is a well timed and dear course of.

At present, X Cash is invite-only, and customers will obtain an “X”-branded Visa debit card that’s usable at any ATM. Customers of X will be capable to ship cash to different X customers in real-time, the corporate mentioned. Invites are solely obtainable to X’s paying members presently.

With the intention to entice clients, X Cash is providing a 6% yield on deposits and three% cashback on eligible purchases. With the intention to earn the 6% yield, a buyer would wish to deposit at the very least $1,000 into an account. Prospects would additionally need to be signed up for X’s premium companies, which is at the very least $8 a month. It could require at the very least a deposit of $1,600 with the intention to cowl X’s premium companies value.

Musk has lengthy talked about turning X into an “the whole lot app” that would come with monetary companies. Musk has his origins in monetary companies, creating one of many first on-line banks underneath the model X.com. That firm was later purchased and merged into what’s now often known as PayPal.

It is nonetheless early for X Cash, however the firm is getting into right into a aggressive market, dominated by PayPal’s Venmo cash switch service and different peer-to-peer cash switch companies like Zelle and Money App.