TikTok is reportedly building a way for users to send money to each other through direct messages, according to Bloomberg. If it ships, this would push the app deeper into financial services, following in the footsteps of apps like PayPal and Venmo.
The feature was found hidden in the code of TikTok’s US iPhone app, and it appears to run on TikTok Pay, the payment system already live in Vietnam, Malaysia, and Thailand for TikTok Shop purchases.
How would sending money on TikTok work?
Based on what’s in the code, whoever receives the money would need to tap to accept it before it expires. Senders will get updates through push notifications or their inbox, and there also seems to be an option to attach a message to the payment, similar to how Venmo lets you caption your transactions.
A TikTok spokesperson said the feature isn’t being tested in any market right now, so this is still early days. ByteDance has not confirmed whether this feature is coming, but the fact that it is doing the groundwork suggests the company is seriously considering it.
Why is TikTok pushing into payments?
Social media apps already have a monopoly on how we spend our time, and now they want a slice of our payments too. TikTok already sits at the top of global app revenue charts, and Sensor Tower data shows users have spent over $2.9 billion on the app this year alone. In the US, people spend more on TikTok than on YouTube, Facebook, or Instagram.
Right now, TikTok users can buy coins to send as gifts to creators, and plenty of people already list their Venmo or Cash App in their bios so followers can pay them directly. A built-in DM payment option would ensure creators have an easy and built-in way to receive money from fans.
Of course, TikTok’s payment features haven’t been free of controversy, with several lawsuits accusing the app of enabling exploitation and questionable money transfers. Whether this new feature ever sees daylight remains to be seen, but the direction is clear: TikTok wants to be more than just a place to watch videos.
