Will Visa Deal Give X Money Momentum vs Neobanks?

Core Insights - Elon Musk's initiative to transform X into an "everything app" has gained momentum with a new partnership with Visa, enhancing the P2P payments functionality of X Money, which poses competition to Venmo and neobanks [1][2] Company Developments - X has partnered with Visa to utilize Visa Direct for transferring funds into X Money wallets, which will be linked to debit cards and bank accounts, enabling secure and instant funding [2] - X has obtained money transmitter licenses in 40 states and the District of Columbia, laying the regulatory groundwork for broader financial operations across the U.S. [5] Industry Trends - Digital wallets are increasingly popular, with 48% of U.S. consumers using them for online shopping and 39% for in-store purchases, indicating a shift towards digital payment solutions [3] - Visa Direct has seen significant growth, with transactions increasing by 38% in the last fiscal quarter, reaching 2.8 billion transactions, and a total of nearly 10 billion transactions for the year [6] Competitive Landscape - X has over 200 million global daily active users, providing a substantial user base for marketing its digital wallet and payment tools [7] - The P2P payments sector is becoming more competitive, with X's entry into finance signaling a shift in the market dynamics [9]