X says US payouts for its Original Content Rewards and Subscriptions will now be handled through X Money (Sarah Perez/TechCrunch)

Elon Musk's social media platform X announced on Wednesday that it will now process all U.S. creator payouts through its own payments service, X Money, starting today. This includes payments from X's Original Content Rewards Program and creators' subscriptions. The advantage of this new system is that payments are made instantly, without waiting for the end of a billing cycle or a minimum threshold.

Previously, payments were issued every two weeks with a minimum payout of $30. The announcement suggests X creators will have no choice but to use X Money, even if they preferred the previous Stripe-powered payout method, as X has not provided an alternative. The shift comes amid other changes to X's creator programs, with the Creator Revenue Sharing Program set to retire on September 7, pushing creators towards the Original Content Rewards Program.

X Money, part of Musk's broader plan to turn X into an "everything app," offers a debit card with 3% cash back, instant payments, free ATM withdrawals, and other digital banking features. However, it's important to note that X Money is not a bank; accounts are held at the FDIC-insured Cross River Bank. Additionally, creator payouts will count towards X Money users' direct deposit requirements for a higher APY rate.

X will also issue a 1099-NEC for individuals receiving these payouts, while LLCs will need to provide their W-9 information to ensure the accuracy of these forms.