NYDFS Blocks Interest on X Money Accounts for NY Residents
NYDFS told X Money it cannot pay interest on stored-value accounts for New York residents, leading to a $300 bonus under the money-transmitter license MT-105532.
The New York Department of Financial Services informed X Money that it cannot pay interest on non-bank deposits held by New York residents.
X Payments holds the NYDFS money-transmitter license MT-105532, approved July 23 and issued July 24. The firm states it is not a bank and does not take deposits; customer funds sit in stored-value accounts.
Workaround and unknowns
After the restriction, X Money replaced interest with a $300 direct-deposit bonus for qualifying New York residents starting October 1, explicitly stating the payment is not APY or interest.
User numbers, deposit balances, and revenue impact for New York remain undisclosed. It is unknown whether similar restrictions apply in other states.