X now offers instant payments to creators
What's the story
Elon Musk's social media platform, X, has announced a major change in its payment system for US-based creators. All creator payouts are now being processed through the app's payment service, X Money. The new system covers payments from both the Original Content Rewards Program and creators' subscriptions. The move is aimed at providing instant payments to creators without any waiting period or minimum threshold requirement.
Payment transition
Previously, payouts were processed every 2 weeks
Previously, creator payouts on X were processed every two weeks with a minimum payout of $30. However, the new system through X Money promises instant payments.
The announcement does not mention any other payment options on the platform, suggesting that creators may have to use this new method even if they preferred the previous one powered by Stripe.
Program updates
Changes to creator programs
Along with the payment system change, X is also making changes to its creator programs. The company will retire its Creator Revenue Sharing Program on September 7.
Creators will be moved to the Original Content Rewards Program, which focuses more on original content.
These changes are part of Musk's larger vision for X as an "everything app."
Service offerings
What is X Money?
X Money, which started supporting creator payouts earlier this month, offers a range of digital banking services.
These include a bank card with 3% cashback, instant payments, and free ATM withdrawals.
However, it's important to note that X Money is not a bank in itself; the accounts are held at FDIC-insured Cross River Bank.
Deposit implications
Direct deposit requirements for higher APY rates
X has also announced that creator payouts will count toward the direct deposit requirements for X Money users. This is to qualify them for a higher annual percentage yield (APY) rate.
Currently, the service's website states that X Premium users will get a boosted 6% rate, as compared to the standard 4% rate.