Elon Musk’s ambitious plan to transform X (formerly Twitter) into a comprehensive payments platform remains in progress, despite facing delays in regulatory approval. The initiative, now rebranded as ‘X Money’rather than its earlier name ‘X Payments’, continues to advance, albeit on a regional rather than nationwide scale.
Earlier this week, X CEO Linda Yaccarino signalled that X Money remains a priority for the company, describing it as one of several key launches planned for the coming months. In a New Year message, Yaccarino said the initiative aims to “connect you in ways never thought possible.”
While Musk initially targeted a 2024 launch, progress has been hindered by regulatory obstacles, particularly in New York State — a critical market for financial services.
License hurdles in New York
X has successfully secured money transmitter licences in 38 US states so far. However, its application in New York was withdrawn last year after facing legal opposition. The filing raised concerns about X’s “fitness and character” to manage financial services.
Central to these objections were allegations regarding X’s connections to Saudi Arabia , where ‘Saudi Crown Prince Mohammed bin Salman’ is an investor in Musk’s ventures. The legal filing claimed that Saudi Arabia’s “history of brutality and repression” had been “fueled and enabled” by the platform itself.
These concerns have slowed X’s ability to gain approvals in all US states, casting uncertainty over a national rollout.
Regional roll out plans
Despite these setbacks, signs suggest that X is moving forward with a regional launch strategy. Recent updates discovered in the app’s backend code reference the availability of ‘X Money in your state,’ indicating a more localised deployment plan.
This phased approach would allow X to start operations in approved states, potentially accelerating the project’s progress while addressing regulatory concerns elsewhere.
However, the limited availability of X Money could restrict its adoption, and international expansion remains a distant prospect. Musk’s divisive political stances are also expected to pose additional challenges in securing international licences.
While hurdles remain, a regional rollout could provide X with a crucial foothold in the payments sector. Whether Musk’s broader vision for X — as a platform combining social media, financial transactions, and other integrated services — will materialise remains to be seen.
For now, the focus is on navigating regulatory landscapes and proving the viability of X Money in select US markets.
