X shifts US creator payouts from Stripe to X Money

X, formerly known as Twitter, announced on Wednesday that it is shifting all U.S. creator payouts to its newly launched financial service, X Money. Effective immediately, payments from both the Original Content Rewards Program and creator subscriptions will be processed through X Money, according to a statement posted on the platform. The change eliminates previous restrictions such as a $30 minimum payout threshold and a two-week processing delay, allowing creators to access funds instantly. The transition marks a significant overhaul of how X handles financial transactions with content creators. According to internal documentation, the former payout system used Stripe, a third-party payment processor, which required creators to wait until the end of a billing cycle or meet a minimum threshold before accessing their earnings. Now, under X Money, these limitations no longer apply. However, the announcement did not offer alternative methods for receiving payments, suggesting that creators are now required to use X Money regardless of preference. The move comes amid broader restructuring within X's creator ecosystem. As of September 7, the platform will discontinue its Creator Revenue Sharing Program, which had paused new enrollments in August. Existing participants are being transitioned into the Original Content Rewards Program, which emphasizes original content creation more heavily than its predecessor. This aligns with X’s ongoing efforts to refine its monetization strategies and encourage higher-quality contributions from users. X Money, introduced earlier this month, is part of Elon Musk’s vision to transform X into an “everything app.” The service offers features such as a debit card with 3% cashback, instant payments, free ATM withdrawals, and digital banking tools. While X Money is not a traditional bank, user accounts are managed by Cross River Bank, which provides FDIC insurance. Additionally, creators who receive payouts through X Money will contribute to their direct deposit requirements, potentially qualifying them for a higher annual percentage yield (APY). Current data indicates that X Premium users could earn up to 6%, compared to the standard 4% rate. To comply with tax regulations, X will issue 1099-NEC forms to individual creators who receive payouts. For legal entities such as limited liability companies (LLCs), the platform will request W-9 information to ensure accuracy in issuing these documents. These steps reflect X’s attempt to streamline compliance processes while integrating financial services directly into its platform. The decision to replace Stripe with X Money has raised questions among some creators. While the new system promises greater flexibility and immediacy in accessing earnings, it also centralizes control over financial transactions within X itself. Some creators expressed concerns about potential issues related to account security, transaction reliability, and the long-term viability of X Money as a financial service. X has not yet responded publicly to requests for clarification regarding the mandatory nature of the switch or the implications for user choice. The shift underscores X’s increasing focus on building a self-contained ecosystem that reduces reliance on external platforms and services. By incorporating financial tools directly into its application, X aims to enhance user engagement and retention while expanding its role beyond just a social media platform. Whether this strategy will succeed in meeting the diverse needs of its user base remains to be seen.