ByteDance is testing peer-to-peer (P2P) and merchant payment capabilities directly inside TikTok’s direct messaging (DM) interface.
TikTok is building a peer-to-peer payment feature into its direct messaging system, moving closer to offering integrated financial services within the platform.
Bloomberg reporters reported that the references is a peer-to-peer transaction mechanism embedded within the app’s iOS codebase.
According to the code, senders can attach a custom message to their transfer, while recipients simply tap a button to accept the incoming funds.
If launched, the feature will process transfers through TikTok Pay, which currently powers in-app commerce across parts of Southeast Asia. However, platform terms reveal that payment handling in markets like Vietnam, Thailand, and Malaysia relies on third-party payment providers rather than an entirely proprietary gateway.
TikTok clarified that the feature is not currently undergoing active testing. With no official release date, the plans remain subject to change or could be scrapped entirely.
The feature would expand TikTok beyond in-app shopping transactions, enabling users to send money directly to friends within their chat threads. This shift positions the platform to compete directly with peer-to-peer payment giants like Venmo, Zelle and Cash App.
TikTok has long been laying the groundwork for this shift, steadily expanding into shopping, search, gaming and local discovery to transform the platform from a short-video feed into an all-in-one everyday app.
Parent company ByteDance is also expanding its financial reach internationally.
Reports from March reveal TikTok applied for two central bank licenses in Brazil. One would grant the app status as an electronic money issuer allowing users to hold funds in prepaid accounts and complete transactions.
The second license as a direct credit company would authorize the platform to issue loans using its own balance sheet or link peer-to-peer borrowers with lenders.
With over 131 million users, Brazil represents a major market for TikTok, where the company has also been stepping up its commercial operations.
This places TikTok in a growing field of social platforms integrating financial transfers directly into their ecosystems. X (formerly Twitter) has similarly expanded into peer-to-peer payments through X Money providing users with an in-app alternative to standalone payment services.
With millions of users actively browsing, discovering, and purchasing products on TikTok Shop, expanding into built-in payments would allow the platform to keep a far greater share of those transactions within its own native ecosystem.
Navigating regulatory hurdles, especially in the US presents a major obstacle. Parent company ByteDance is already defending against federal lawsuits and government scrutiny regarding youth safety and child privacy protections.
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Recent reports reveal that TikTok, ByteDance, and other tech giants are facing thousands of US lawsuits alleging their platforms contribute to youth mental health harms. Although the companies deny these claims a federal appeals court recently ruled that the litigation can proceed.
Launching a direct payment feature would introduce significant regulatory demands. TikTok would have to adhere to financial standards for processing payments, preventing fraud and money laundering verifying user identities and protecting customer funds across every operational market.
Despite code appearing in the app, the direct messaging payment feature remains early in development. TikTok has provided no timeline for its release or confirmation that it will ever launch for US users.
