Key facts
- X is transitioning all U.S. creator payouts to its payment service, X Money, replacing Stripe.
- The new system provides instant payouts without minimum thresholds, unlike the previous bi-weekly system.
- This change appears to make X Money the sole option for U.S. creators to receive platform earnings.
- X is also retiring its Creator Revenue Sharing Program, shifting creators to the Original Content Rewards Program.
- X Money offers features like a bank card with 3% cash back and higher APY rates for direct deposit users.
X, the social media platform formerly known as Twitter, announced on Wednesday that it is shifting all U.S. creator payouts to its own payment service, X Money, replacing Stripe as the processor. This change, effective immediately, aims to provide creators with instant access to their earnings from both the Original Content Rewards Program and subscriptions.
Previously, creators received payouts every two weeks with a minimum threshold of $30. The new system eliminates these waiting periods and minimums, allowing creators to access funds as soon as they are sent. However, the wording of the announcement suggests that X Money may become the mandatory payment method for U.S. creators on the platform, a point X has been asked to clarify.
This payment system overhaul coincides with other adjustments to X's creator programs. The company is retiring its Creator Revenue Sharing Program on September 7, directing creators to the Original Content Rewards Program, which emphasizes original content. X Money, launched earlier this month, is part of Elon Musk's broader strategy to transform X into an 'everything app,' offering features such as a bank card with 3% cash back, instant payments, and free ATM withdrawals. While X Money provides digital banking services, it is not a bank itself; accounts are held at Cross River Bank.
Furthermore, creator payouts through X Money will count towards direct deposit requirements for users seeking higher Annual Percentage Yield (APY) rates on their X Money accounts, with X Premium users eligible for a boosted 6% rate compared to the standard 4%. X will also issue 1099-NEC forms for individuals receiving creator payouts and will collect W-9 information from LLCs to ensure accurate tax reporting.