TikTok Eyes Peer-to-Peer Payments via Direct Messages, Sparking Concerns and Excitement

TikTok is developing a feature that would allow users to send each other money via direct messages, according to a new report from Bloomberg. The feature, which uses TikTok Pay, is currently hidden in the code of the U.S. iPhone app and indicates that recipients can “tap to accept” payments while senders can include messages with their payments, similar to Venmo.

The development of this feature has sparked concerns about the potential risks and benefits of peer-to-peer payments on social media platforms. TikTok told Bloomberg that the feature is not being tested, suggesting it’s in early development, but no release date or timeline has been announced.

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This isn’t the first time TikTok has explored financial services; earlier this year, Reuters reported that TikTok had applied to Brazil’s central bank for approval to operate as a financial technology company offering lending and payment services. Other social networks, such as X (formerly Twitter), have also launched similar features, including X Money, which allows users to send each other money.

As the use of social media platforms continues to expand into financial services, experts are weighing in on the potential implications for consumers and businesses alike. While some see this move as a way for TikTok to diversify its offerings and increase user engagement, others are concerned about the risks of unregulated transactions and data security breaches.