TikTok may soon let users send money directly through DMs

TikTok may soon introduce a new feature that would allow users in the United States to send money directly to one another

TikTok may soon introduce a new feature that would allow users in the United States to send money directly to one another without leaving a conversation. According to a report code discovered within TikTok’s US iOS application suggests that the platform is developing a peer-to-peer (P2P) payment service connected to TikTok Pay, its existing digital payment system.

The potential feature would allow users to transfer money through direct messages, making payments more convenient and closely integrating financial services into everyday conversations. The uncovered code reportedly indicates that users would receive notifications showing the progress of their transactions. People receiving money would also be required to accept the payment by pressing a button before a specified expiration deadline.

Another feature reportedly included in the code would allow users to add captions to their payments. This would be similar to the way payment apps such as Venmo allow users to include messages or descriptions when sending money. Such a system could make TikTok’s messaging service more useful for personal transactions while strengthening the company’s broader efforts to expand into financial services.

News of the possible payment feature has already attracted attention in financial markets. Shares of established payment companies, including PayPal and Western Union, reportedly declined following reports about TikTok’s potential move into peer-to-peer payments. If introduced, the service could increase competition for companies that already provide digital money-transfer services.

TikTok would reportedly build the proposed system around TikTok Pay, which currently operates mainly in Southeast Asian markets, including Malaysia and Vietnam, through TikTok Shop. In the United States, TikTok Shop currently relies on several established payment options, including PayPal, Apple Pay, Google Pay, Klarna, Affirm, and traditional credit cards. Introducing payments directly through TikTok’s messaging system would therefore represent an expansion of the company’s existing payment network.

Despite the reports, TikTok has not confirmed that the feature is being tested. A TikTok spokesperson told Bloomberg that there is currently no test of the proposed peer-to-peer payment system in any market. This means that the feature could still be under development and may not necessarily become available to the public.

The concept of peer-to-peer payments is not entirely new within TikTok’s corporate family. Douyin, TikTok’s Chinese counterpart, already supports peer-to-peer payments through Douyin Pay. This existing experience could potentially provide ByteDance with knowledge and infrastructure for expanding similar services to other markets.

ByteDance, TikTok’s parent company, also remains involved in the development of its US operations. The company reportedly holds a 19.9% stake in the TikTok US venture following a compelled acquisition deal earlier this year. Meanwhile, ByteDance has applied to Brazil’s central bank for licenses that would allow it to operate as a lender and offer prepaid accounts, highlighting its wider interest in financial services.

Social media companies have previously experimented with payment services. Facebook Messenger introduced peer-to-peer payments in the United States in 2015, while X launched X Money for paid subscribers in July. If TikTok eventually introduces its own P2P payment system, it could further blur the line between social networking, messaging, shopping, and digital financial services.