TikTok Explores Peer-to-Peer Payments

TikTok is exploring a feature to allow users to send each other money via direct messages, using its existing TikTok Pay offering. The feature, which is still in early development, would enable users to send and receive payments directly within the app.

According to references found in the code of TikTok's U.S. iPhone app, recipients would be able to “tap to accept” payments, while senders could include messages with their payments. This feature is similar to those offered by services like Venmo.

TikTok has confirmed that the feature is not being tested, suggesting that it is still in the early stages of development. The company has not provided a timeline for when or if the feature will be widely released.

TikTok's expansion into financial services is not new, as the company has already applied to Brazil's central bank for approval to operate as a financial technology company offering lending and payment services. The introduction of peer-to-peer payments would put TikTok in competition with services like Venmo and Zelle.

## Why it matters The move into financial services is part of TikTok's broader effort to expand beyond its social media roots. The company has already introduced features like robust search, TikTok Shop, and local discovery maps, and has also explored hotel bookings and games. By introducing peer-to-peer payments, TikTok would be following in the footsteps of other social media companies, such as X, formerly known as Twitter, which recently launched X Money to allow users to send each other money.

TikTok's entry into the peer-to-peer payments market could have significant implications for the company's users, as well as for the broader financial services industry. As the company continues to develop and potentially release this feature, it will be important to watch how it is received by users and how it impacts the competitive landscape.