TikTok may soon enable users to send money directly through direct messages.
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It seems like TikTok is looking to add another feature that keeps users engaged within the app.
According to Bloomberg, TikTok is allegedly developing a method for users to send money to one another through direct messages. If implemented, this would expand the app's presence in financial services, following the examples set by PayPal and Venmo.
The feature was discovered embedded in the code of TikTok’s US iPhone app and is believed to operate using TikTok Pay, which is already active in Vietnam, Malaysia, and Thailand for purchases on TikTok Shop.
How would the money transfer function on TikTok operate?
From the information in the code, it appears that recipients must tap to accept the incoming money before it expires. Senders will receive notifications through push alerts or their inbox, and there may be an option to include a message with the payment, similar to how Venmo allows transaction captions.
A representative from TikTok stated that this feature is not currently being tested in any market, indicating that it is still in the early stages. Although ByteDance has not confirmed the upcoming feature, the preparatory work suggests that the company is giving it serious consideration.
Why is TikTok venturing into the payments space?
Social media platforms are already dominant in terms of our time consumption, and now they aim to capture a portion of our financial transactions as well. TikTok currently leads global app revenue, with Sensor Tower data indicating that users have spent over $2.9 billion on the platform this year alone. In the United States, expenditures on TikTok surpass those on YouTube, Facebook, or Instagram.
At present, TikTok users can purchase coins to send as gifts to content creators, and many users already provide their Venmo or Cash App details in their bios for direct payments from followers. An integrated DM payment feature would provide creators with a seamless way to receive funds from their fans.
However, TikTok's payment features have faced scrutiny, with several lawsuits alleging that the app facilitates exploitation and dubious financial transactions. It remains to be seen whether this new feature will be launched, but the inclination is clear: TikTok aims to evolve beyond being a platform solely for video consumption.
Rachit is an experienced tech journalist with more than ten years of experience in the consumer technology sector.
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Other articles
TikTok may soon enable users to send money directly through direct messages.
Secret code within TikTok's iPhone application suggests the existence of a direct messaging payment feature supported by TikTok Pay, the service currently utilized for TikTok Shop transactions in certain Asian regions.
