Elon Musk's 'X Money' To See About 600 Million Active Monthly Users Via Visa Direct Integration: 'Excited To Partner,' Says CEO

As Visa Inc. (NYSE:V) reported better-than-expected first-quarter earnings after market close on Thursday, CEO Ryan McInerney highlighted how the company plans to bolster its partnership with Elon Musk‘s newly launched X Money.

What Happened: X platform (formerly Twitter) users will soon experience the convenience of instant fund transfers between their X Money accounts and bank accounts.

CEO McInerney underscored Visa’s partnership with X during his first-quarter earnings call and said the company was “excited to partner with X Money for their much-anticipated launch of the X Money account”

When asked about the daily volumes of transactions that the new platform could expect. McInerney explained that X Money will “allow the 600 million or so active monthly users of X to fund their X Money accounts.”

This new capability is made possible through a partnership with Visa Direct, which will also enable creators on the platform to receive payments much faster, said the CEO.

McInerney emphasized the successful collaboration between its team and the X Money team in developing these new features. Looking ahead, they expressed excitement about further expanding the platform’s functionality and the number of use cases it supports.

See Also: Visa Shares Rise On Solid Q1 Results: Details

Why It Matters: Visa Direct, a payment service offered by the company, is a network that allows for real-time money transfers between accounts and Visa cards. The platform is used for both personal and business purposes.

In an X post dated Jan. 28, Linda Yaccarino, the CEO of X, announced the launch of ‘X Money’ and its partnership with Visa.

Visa beat earnings and revenue expectations for the quarter, as its earnings per share of $2.75 was above Benzinga’s estimates of $2.66. Revenue was at $9.51 billion as compared to the expected $9.34 billion, up from $8.63 billion last year.

Payment volume rose 9%, cross-border volume (excluding intra-Europe) increased 16%, total cross-border volume was up 16%, and processed transactions grew 11% to 63.8 billion. Visa’s Service revenue reached $4.2 billion, an 8% increase.

Price Action: Visa’s stock rose 2.13% on Thursday and advanced 1.16% to $347.03 per share in after hours trading, whereas, the exchange-traded fund tracking S&P 500, SPDR S&P 500 ETF Trust (NYSE:SPY) was up 0.54% at $605.04.

Visa has a consensus ‘buy’ with a price target of $324.06, according to the 34 analysts tracked by Benzinga. The high target is $375, and the low is $252. Recent ratings by Piper Sandler, BofA Securities, and Citigroup suggest a $523 target, implying a 1.14% upside.

Photo via Shutterstock

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