Elon Musk finally launches X Money. What could possibly go wrong?

“They’re gonna be like, ‘Wait, I don’t know where this Etsy shop is located—I don’t care,” Hawkins said, noting, “that’s just a bad user experience.” Any issue impacting adoption could hurt X Money’s long-term success, and these aren’t the only speedbumps users may hit, an Ars review of X Money FAQs and web materials suggests. Users also may reject the product if they worry they may abruptly lose access to X Money. That can happen if the X platform itself goes down or if activity on a user’s X or X Money account triggers restrictions. If the former occurs, X doesn’t really offer solutions, only suggesting that users try basic fixes, like restarting or updating, switching to another device, or toggling between Wi-Fi or cellular data. And if the latter occurs, X can freeze withdrawals for up to 180 days, one X policy said. For Musk, it seems that X Money has launched short of his online banking dreams, while for users, buying into the imperfect product may be a gamble—especially if X doesn’t expand support for it. Since acquiring the platform formerly known as Twitter in 2022, Musk notably made drastic cuts to its support teams in favor of automated bots. Although X does advertise a customer support line (1-888-606-9669), its FAQ emphasized that in-app chat is “the easiest way” to get support for X Money problems, including for users who are locked out. If too many users experience complex payment issues, X’s limited support teams could struggle to keep up, leading to declining engagement. Most banks maintain large dispute-resolution teams to handle call volumes and ensure that customers aren’t cut off from their money. Uncertainty could keep users away. If an X Money account is suspended before a user can withdraw funds, X will leave them in limbo before eventually notifying them of options to reclaim funds. And in certain cases, the wait could be lengthy, as X may hold onto funds “temporarily to comply with legal or regulatory obligations,” the FAQ said. Users may also be put in a difficult position if someone gains access to their X account and makes unauthorized payments. X’s FAQ says that users must quickly report unauthorized transactions or lose the funds. “Your liability for unauthorized electronic fund transfers may depend on how quickly you report the issue after discovering it,” the company said. That means that even when making debit purchases with Visa’s backing, X can’t guarantee that users will be refunded for all fraudulent charges. “Debit card purchases are also protected by Visa’s Zero Liability Policy, which means you won’t be held responsible for unauthorized card transactions when reported promptly,” X’s FAQ said, without specifying what “promptly” means. Musk has been hyping X Money for years, claiming it would let users put their entire financial lives on X. “I’m talking about, like, you won’t need a bank account,” Musk said in 2024, when first describing his vision to staff. He claimed it would “blow my mind” if X Money wasn’t launched quickly in 2024, but banking industry experts said it would take much longer, even if Musk secured all the approvals he needed. The earliest hurdle that Musk couldn’t clear arose in New York. In late 2024, X weirdly ended up withdrawing its application for a money transmitter license in the state. X appeared to back down after a law firm warned state banking regulators that the company was “unfit” to process payments and should instead be probed over its alleged “troubling and deep ties” to the Kingdom of Saudi Arabia. Ever since, Ars has been requesting information on X’s withdrawal in New York, including requests to review regulators’ discussions of the application. But New York public records officials confirmed to Ars in May that no information would be shared, partly because X fought the disclosures. Initially, X “requested that the application be excepted from public disclosure” on the basis that it contained “trade secrets,” a letter denying Ars’ request said. But the state found no trade secrets and instead granted X’s request, citing the risk of an “unlevel playing field” if rivals saw the “blueprint” for X Money. Additionally, officials said that their internal discussions could not be shared, as they are marked confidential to encourage “candor” and “open communication” among officials when approving sensitive applications. It’s unclear whether X plans to resubmit applications in New York or Massachusetts, where the launch of X Money has long been criticized by that state’s senator, Elizabeth Warren. In April, Warren warned Musk in a letter that X could not be trusted to handle responsibilities like dispute resolution and fraud remediation, citing the company’s record of failing to prevent abuses on its platforms, including allowing sanctioned actors to buy verified accounts and missing other forms of verified-user fraud. “If your track record operating X is any indication of how you’ll operate X Money, consumers, our national security, and the stability of the financial system may be at risk,” Warren wrote. Warren also raised concerns about X’s banking partner, Cross River Bank, pointing to prior enforcement actions over deceptive loan practices involving the bank’s fintech partners. As Tech Times noted, the integrity of X Money depends on both Cross River and X protecting X users. X did not respond to Ars’ request to comment.