X Ditches Stripe

X has shifted its US creator payouts from Stripe to X Money, its in-app payments service. This change allows for instant creator payouts with no minimum threshold, a significant improvement from the previous system which processed payouts every two weeks with a minimum payout of $30.

The new system will also issue 1099-NEC forms for individuals receiving payouts, and X will collect W-9 information from LLCs to ensure accurate 1099s. X Money, which is not a bank but holds accounts at FDIC-insured Cross River Bank, will handle all creator payouts, including those from the Original Content Rewards Program and creators' subscriptions.

As part of this change, X's Creator Revenue Sharing Program will be retired on September 7, and creators are being shifted to the Original Content Rewards Program. This program puts a heavier emphasis on original content, and creators will now receive instant payouts through X Money.

## What it means for creators The shift to X Money is part of X's broader plan to make itself an 'everything app' with a range of digital banking services. X Premium users will get a 6% APY rate, compared to the standard 4% rate. Creator payouts will also count towards X Money users' direct deposit requirements to receive the service's better APY rate.

## Why it matters The change to X Money is significant for creators who rely on timely payouts. With instant payments and no minimum threshold, creators can access their earnings more quickly and easily. This change is also part of X's larger strategy to expand its digital banking services and make itself a one-stop-shop for users.

The shift away from Stripe and towards X Money may also indicate a larger trend towards in-app payments and digital banking services. As X continues to expand its services, it will be interesting to see how creators and users respond to the changes.