TikTok explores peer-to-peer payments via DMs, report says

A recent report by Bloomberg reveals that TikTok is working on a feature to enable users to send money directly through the app's messaging system, according to sources. This proposed functionality would leverage TikTok Pay, which is currently accessible in Southeast Asia for TikTok Shop transactions. Hidden code within the latest version of TikTok's U.S. iPhone app hints at the potential development, suggesting recipients can "tap to accept" payments, while senders can attach messages to their transactions, akin to Venmo.

Despite the report, TikTok has denied that the feature is currently under test, indicating it's in the early stages of development. As the feature is still in its nascent phase, its widespread release and timeline remain uncertain. TikTok has not yet provided a comment to TechCrunch regarding the matter. It's important to note that this isn't TikTok's first foray into financial services.

Earlier this year, Reuters reported that TikTok had submitted an application to Brazil's central bank for authorization to operate as a financial technology firm offering lending and payment services. Although primarily classified as a social media platform, TikTok has been progressively diversifying its services, incorporating features such as advanced search capabilities, TikTok Shop, a local discovery map, gaming, hotel reservations, and more.

By incorporating peer-to-peer payments, TikTok would be entering a competitive landscape with services such as Venmo and Zelle. Moreover, TikTok is not the only social media platform venturing into financial services, as X, formerly known as Twitter, recently introduced X Money to facilitate peer-to-peer money transfers among its users.