The news: X (formerly Twitter) partnered with Visa on its payments solution, X Money Account, CEO Linda Yaccarino posted on the platform.

• Visa will enable instant funding to the X Wallet through Visa Direct.
• It will also let users connect their debit cards for peer-to-peer (P2P) payments and will offer instant bank account transfers.

What this means for Visa: Partnering with X will help the network grow its Visa Direct volume.

• In Q4 FY 2024 (ending September 30), Visa Direct transactions grew 38% quarterly.
• For the full year, Visa Direct boasted 10 billion transactions.

How this helps X: Visa can bring trust and security to X Money, helping it overcome a major adoption hurdle.

X Money will also benefit from Visa Direct’s near-real-time speed.

• Visa Direct will transfer funds to US bank accounts in one minute or less starting in April 2025.
• If X Money offers these faster transfers for free, it will help set the P2P platform apart from competitors like Venmo, which charges a 1.75% fee for instant transfers.

Our take: While partnering with Visa will help put X Money in a stronger position when it launches, the P2P platform will still face an uphill battle in securing consumer adoption.

In addition to trust issues, X Money will have to compete in a highly saturated market where consumers are already loyal to their preferred platforms, like Venmo, Zelle, and Cash App.

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