New Delhi . After bringing a big change in the world of social media, now Elon Musk is preparing to bring a new revolution in the banking sector also. His owned social media platform The aim of this new facility is to provide both social media and banking services to the users on a single platform. Musk has long wanted to make X an everything app where all the facilities like chatting, posting, video calling, shopping and banking can be found at one place. X Money is considered to be an important part of this ambitious plan.
The new banking service is currently made available to X’s Premium and Premium Plus users in the US. After successful initial testing, it is now being rolled out on a large scale. Through this service, users can deposit money in their account, send money to other people instantly, pay electricity, water and other bills and will also be able to use facilities like digital cheque. Its aim is to reduce the need for separate banking and payment apps.
To make X Money attractive, the company has announced to give interest up to six percent annually to the users. This rate is considered higher than many traditional savings accounts in America. X has partnered with Cross River Bank to operate this service. Apart from this, government insurance protection up to the prescribed limit will also be available on the deposits of the users, due to which an attempt has been made to strengthen the confidence of the customers.
This step of Elon Musk is being considered as a direct challenge to the big companies present in the digital payment market. So far, platforms like PayPal, Venmo and Cash App have been the dominant players in this space but the competition is likely to intensify with the arrival of XMoney. If this model of social media and banking services is successful then in future the need for users to download different apps may be eliminated to a great extent.
For many years, Musk wanted to develop a platform in America on the lines of China’s popular super app WeChat where users could fulfill almost every digital need of daily life from a single app. X Money is considered to be the most important step taken in that direction. Experts believe that if this experiment is successful, then the role of social media companies will not be limited to communication only but they can also become a big center of financial services.
However, questions are also being raised regarding this new service. Some US lawmakers and financial experts have expressed concern over the six percent interest rate and the stability of the banking model. He says that how such an attractive interest rate will be maintained for a long time and there should be clear information about where the financial resources will come from for this. Regulatory agencies are also keeping an eye on this new system.
Despite this, technical experts are considering it as a big step towards the future of digital banking. If
