X Money is bringing banking features to its platform through a partnership with Cross River, a banking-as-a-service provider. The deal will let X Money offer peer-to-peer payments, FDIC-insured accounts, and Visa debit cards to its users. It's the latest move by the company to expand its financial services beyond what it currently provides.
The partnership details
Cross River will handle the underlying banking infrastructure. That means the accounts X Money users get will be FDIC-insured, and the debit cards will run on Visa's network. Cross River already works with a number of fintech firms, providing them with the regulatory and banking backbone they need to offer financial products without becoming a bank themselves.
For X Money, this is a way to add real banking capabilities without having to get a banking charter. The company can now let users hold money in insured accounts and spend it with a debit card. Peer-to-peer payments are also part of the package, though X Money hasn't detailed exactly how those will work yet.
What this means for X Money users
Users will be able to keep their money in an FDIC-insured account linked to X Money. That's a big step up from just having a balance in a digital wallet, which often isn't insured. The Visa debit card means they can spend that money anywhere Visa is accepted, online or in stores.
The peer-to-peer payments feature will let people send money to each other through the platform. It's a crowded space — Venmo, Cash App, and Zelle already dominate — but X Money is betting its existing user base will make it a contender.
Cross River's role
Cross River is a well-known player in the banking-as-a-service world. It provides the regulated bank accounts, the card issuing, and the compliance framework. For X Money, that means it can focus on the user experience and marketing while Cross River handles the heavy regulatory lifting.
The partnership is not exclusive, and Cross River works with many other fintechs. But for X Money, it's a critical piece of its financial services puzzle. Without a bank partner, it couldn't offer FDIC insurance or issue Visa cards directly.
X Money hasn't said when the new features will roll out. The company also hasn't disclosed whether there will be fees for the accounts or cards. Those details will likely come closer to launch.
