TikTok Considers Adding Money Transfers to Direct Messages -

TikTok is exploring a new feature that could allow users to send money directly to one another through private messages, expanding the social media platform’s efforts to build financial services into its ecosystem.

The feature remains in early development and is not currently being tested in any market, a TikTok spokesperson said. References to the payment system were found in code hidden within the latest version of TikTok’s US iPhone app.

The code indicates that recipients could tap to accept incoming payments before a set expiration date. Senders could receive updates about transactions through push notifications or their inbox, while users may also be able to attach a message to a payment.

If launched, the service would reportedly use TikTok Pay, an existing payment system available in Vietnam, Malaysia and Thailand. TikTok Pay is currently used primarily for purchases through TikTok Shop.

The development reflects TikTok owner ByteDance’s broader push into financial technology and social commerce. By allowing users to transfer money within the app, TikTok could keep more transactions inside its platform while potentially increasing user engagement and revenue.

TikTok already facilitates several types of financial activity. Users can purchase digital coins to send virtual gifts to creators and livestream hosts, while sellers conduct transactions through TikTok Shop. Many users also share payment details for services such as Venmo and Cash App in their profiles, allowing followers to send money outside the platform.

Global consumer spending on TikTok has exceeded US$2.9 billion this year, according to market intelligence firm Sensor Tower. The platform has ranked as the world’s leading app for in-app purchase revenue since 2022.

ByteDance and TikTok are also hiring for financial-services roles in the US and other markets. The company’s expansion into payments mirrors efforts by other social platforms, including X, which has been developing its own financial services.

However, TikTok’s financial products have also faced scrutiny. State attorneys general in the US have alleged that some payment-related features contributed to financial exploitation of minors and raised concerns over money-transmission and money-laundering rules.

There is no guarantee TikTok will ultimately launch the peer-to-peer payment feature. – TS/ERMD

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