TikTok is working on integrating peer-to-peer payments directly into its direct messages through TikTok Pay, its existing payment platform. This move would mark a significant expansion of TikTok’s financial services in the US and place it in direct competition with Venmo and Zelle.
- P2P payments via DM linked to TikTok Pay found in app code
- Currently live payments limited to Southeast Asia via TikTok Pay
- US rollout would compete with Venmo, Zelle, and other payment apps
What happened
Bloomberg reported that TikTok is developing a feature to enable users to send money inside direct messages using TikTok Pay, its current payment system. The feature surfaced through hidden code in the latest TikTok iPhone app for the US market, showing that recipients would need to accept payments before they expire and allowing senders to add messages to payments, similar to Venmo.
TikTok has downplayed the report, stating the feature is not currently being tested in any market, indicating it remains in early development. There is no definite timeline or guarantee that the application of this feature will result in a public release.
Why it matters
The planned integration aligns with TikTok’s expanding role beyond video entertainment, moving towards a super-app model that incorporates financial services and commerce. Social platforms are increasingly seeking to embed money-transfer capabilities to capture more consumer spending and valuable data, intensifying competition with dedicated payment apps like Venmo and Zelle.
TikTok already generates substantial in-app purchase revenue, with consumers worldwide spending over $2.9 billion this year. Although TikTok Pay currently operates only in Southeast Asia for TikTok Shop transactions, introducing direct payments in the US would significantly enlarge TikTok’s payment ecosystem and potentially lock more financial interactions inside the platform.
What to watch next
Key developments to monitor include TikTok’s progress on testing and launching the payments feature in the US and how it integrates with or expands TikTok Shop’s existing payment options. TikTok’s movement in financial services also involves seeking licenses in markets like Brazil and hiring for financial roles globally, signaling a broader commitment to fintech expansion.
Additionally, regulatory and political factors in the US, including TikTok’s shifting ownership structure involving American investors, could influence the rollout speed and scope of new payment functionalities. The competitive response from established payment platforms and user adoption rates will further shape TikTok’s success in social peer-to-peer payments.