X Money offers New Yorkers $300 after NYDFS bars interest payments

The NYDFS told X Money that it could not continue paying bank account-like interest on non-bank account deposits from New York residents. X Money offered New York residents a $300 direct deposit bonus as interim compensation. X Money said the bonus does not constitute APY or interest. X Money uses a stored value account for New York customers instead of a bank account. The account terms allow customers to obtain interest through September 30. The terms allow customers to earn the $300 bonus after October 1. The NYDFS approved X Payments as a money transmitter effective July 23, not as a bank. X Money lists non-bank license number MT-105532 with a July 24 issuance date. X Payments states that it is not a bank and does not take deposits. Its stored value account terms state that it is not FDIC-insured. X Money's homepage mentions deposits 16 times and advertises FDIC coverage. X Money promises to credit the bonus within 14 days after New York residents make $3,000 of qualifying deposits.