X.com Bank: Your Partner in Financial Growth

X.com: The Online Bank That Became PayPal

Introduction

X.com was an online financial services platform founded in 1999 by Elon Musk, Ed Ho, Harris Fricker, and Christopher Payne. Originally launched as a digital bank, it quickly gained traction for its innovative approach to online transactions. In 2000, X.com merged with Confinity, a competing payments company, and in 2001, it was rebranded as PayPal. Years later, in 2023, the X.com domain found new life as the branding for Twitter following its acquisition and transformation by Elon Musk.

Business Model

X.com aimed to revolutionize digital banking by offering a seamless online experience. Partnering with First Western National Bank, it provided FDIC-insured financial services. Unlike traditional banks, X.com eliminated overdraft fees and rewarded users for referrals, offering cash incentives to attract customers.

One of its most groundbreaking features was allowing users to send money via email, a novel concept at the time. Additionally, customers could create accounts entirely online without requiring physical paperwork or checks, setting a new standard for digital banking.

History

Elon Musk, fresh from selling his first startup, Zip2, invested a significant portion of his earnings to launch X.com in March 1999. The company started as a small operation in Palo Alto, California, and rapidly grew its customer base.

However, internal conflicts arose over leadership and vision. Within five months, Musk dismissed co-founder Harris Fricker, leading to the departures of Christopher Payne and Ed Ho. Despite these setbacks, X.com officially launched on December 7, 1999, with former Intuit CEO Bill Harris stepping in as the company's first CEO.

In early 2000, X.com experienced rapid expansion but also encountered security vulnerabilities, including a major flaw that allowed unauthorized transfers between accounts. The issue was quickly addressed, but it underscored the risks associated with online banking at the time.

By March 2000, X.com merged with Confinity, a competitor that had developed PayPal, a payment solution initially designed for Palm Pilot devices. The merged company adopted the PayPal name in 2001, with Musk as its largest shareholder and initial CEO.

Later that year, while Musk was on a trip to Australia, the company’s board replaced him with Peter Thiel due to concerns over management decisions. Following this leadership shift, X.com officially rebranded as PayPal.com in June 2001, marking the end of X.com as a standalone entity.

Domain Name and Revival

In 2017, PayPal sold the X.com domain back to Elon Musk, who repurchased it without specifying immediate plans for its use. In 2023, the domain was repurposed as part of Twitter's rebranding after Musk’s acquisition of the social media giant in 2022. Today, X.com serves as the online identity for what was once Twitter, now reimagined under Musk’s vision for the platform.