TikTok could let you send friends money via DM

A report by Bloomberg suggests that TikTok is developing a feature allowing users to send money to each other via direct messages. The code in the U.S. iOS app points towards the creation of a peer-to-peer payment system, which would enable senders to receive notifications about transaction statuses and receivers to accept incoming payments by tapping a button.

Users could also attach messages to their transactions, similar to the practice of adding captions to Venmo payments. TikTok Pay, an in-app payment system for TikTok Shop, is currently only available in Southeast Asian countries like Malaysia and Vietnam. U.S. TikTok Shop users can already make payments using PayPal, Apple Pay, Google Pay, Klarna, and Affirm, as well as credit and debit cards.

While the new feature is hinted in TikTok's code, there is no assurance that it will be implemented, as apps often develop ideas that are later abandoned. TikTok's spokesperson confirmed that the feature is not currently being tested. ByteDance, TikTok's Chinese parent company, has previously offered similar financial services through Douyin's Douyin Pay.

However, TikTok's U.S. operations were recently forced to be sold to a new, majority U.S.-owned company, leaving ByteDance with a 19.9 percent ownership stake. ByteDance is also exploring expanding its financial services internationally, as seen with its recent application to operate as a lender and offer prepaid accounts in Brazil.

Payment integration to social media platforms is not new, with Facebook Messenger offering peer-to-peer payments since 2015 and X introducing X Money to its paid U.S. subscribers in July. Nonetheless, TikTok's growing use for commerce could potentially give its peer-to-peer offering an advantage. In the first half of 2023, TikTok Shop users spent $50.3 billion globally, with $11.8 billion coming from U.S. shoppers, one of its largest markets alongside Southeast Asia.