Visa & Elon Musk's X: A Power Play in the Race for Fintech Dominance?

Payments and U.S. credit card network giant Visa Inc. V recently partnered with Elon Musk's social media platform, X (formerly Twitter), to introduce a real-time payment service called "X Money Account," set to launch later in 2025. This service will likely feature an in-platform digital wallet, enabling users to make secure, instant peer-to-peer payments by connecting their debit cards and transferring funds directly to bank accounts via Visa Direct.Initially available to U.S. users, this initiative aligns with Musk's vision of transforming X into an "everything app," similar to China's WeChat, integrating functionalities like messaging, streaming and payments. Musk, who is also the CEO of EV Giant Tesla, Inc. TSLA, bought the company in April 2022 through a massive $44 billion deal. Since then, X has already obtained money transmission licenses in 41 states, supporting its expansion plan into financial services.The collaboration with Visa aims to create new revenue streams, harnessing the creator economy and reducing reliance on advertising income. Essentially, X Money is aiming to become the go-to financial layer of X, leveraging its social media base to rival established players in both P2P and business transactions. The move will help it compete with other similar payment service providers like Zelle or PayPal Holdings, Inc.’s PYPL Venmo. Linda Yaccarino, the CEO of X, said in a post on the social media platform that this was the “first of many” announcements regarding X Money for 2025.How Does Visa Stand to Gain From X Partnership?Visa faces competition from PayPal, Apple Pay and even crypto networks. Partnering with Musk’s platform helps it stay relevant in the evolving fintech space and defend its dominance against emerging digital-first payment solutions. With this move, Visa gains early access to a potentially massive new ecosystem. As X Money integrates with Visa Direct, millions of X users could start using Visa’s network, driving up transaction volume and fees.Visa’s total processed transactions grew 16.9% in fiscal 2022, 10.4% in fiscal 2023 and 10% in fiscal 2024. The Zacks Consensus Estimate for fiscal 2025 total processed transactions indicates 9.9% year-over-year growth. The new deal will likely rejuvenate the growth rate. The company is set to report its first-quarter fiscal 2025 results on Jan. 30, 2025, where total processed transactions are expected to grow 9.8% year over year. (Read more: Key Predictions for Visa's Q1 Earnings: Should You Buy the Stock Now?)See the Zacks Earnings Calendar to stay ahead of market-making news.Digital payments witnessed rapid growth triggered by the COVID pandemic, and Visa and its closest rival, Mastercard Incorporated MA, are racing to capture a bigger share of the financial transaction services market. As such, the partnership with X will enable Visa to secure a larger share of the fintech space through first-mover advantage.Thanks to this new deal, Visa Direct could become a go-to choice for instant payments across other platforms, too. Looking ahead, if X expands into international remittances or crypto-backed payments, Visa could further capitalize on cross-border transactions. The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Verdict?If executed well, this could be a major fintech disruptor, cementing both Visa and X as dominant players in the evolving digital payments landscape. But execution and adoption will be key. If X is able to integrate payments seamlessly, build trust and expand merchant support, it could become a true disruptor. President Donald Trump’s business-friendly moves will likely create a favorable environment for its execution phase.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks