TikTok is exploring feature to send money over direct messages

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFintechInformation TechnologyTikTok is exploring feature to send money over direct messagesSocial media apps are expanding their business models into commerce to capture more consumer data and spendingAuthor of the article:Natalie Lung and Alexandra S. LevineConsumers worldwide have spent more than US$2.9 billion so far this year on TikTok, which has been the top app globally by in-app purchase revenue since 2022. Photo by ROBYN BECK/AFP via Getty ImagesTikTok is exploring a feature that would allow users to send money to each other in direct messages, in a move that would extend the social media app’s push into financial services.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe in-development feature, if launched, would use the TikTok Pay offering already available in Southeast Asia to handle the transactions. Evidence of the addition was found inside of code hidden in the current version of TikTok’s United States iPhone app.The code suggests that receivers can “tap to accept” payments sent to them before an expiration date, and senders can be notified about the status of the transaction via push notifications or their inbox. There are also references to the ability to add a message with the payment, similar to the captions in PayPal Holdings Inc.’s Venmo service.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againA TikTok spokesperson said the feature is not currently in testing in any market, indicating it remains in early development. TikTok Pay is currently only available in Vietnam, Malaysia and Thailand and is used to pay for TikTok Shop purchases. There is no guarantee the company will ultimately launch the peer-to-peer payment feature, but the engineering work on it indicates global owner ByteDance Ltd. is exploring such a move.Social media platforms are expanding their business models into commerce to capture more consumer data and spending. Beijing-based ByteDance, which operates the global TikTok platform and several key pieces of TikTok’s U.S. business, has been pushing into the fintech space for years, building and investing in its own payments tools to help increase spend and engagement in the video app.Consumers worldwide have spent more than US$2.9 billion so far this year on TikTok, which has been the top app globally by in-app purchase revenue since 2022, according to market intelligence firm Sensor Tower. In the U.S., users spend more on TikTok than on YouTube, Facebook and Instagram.In addition to vendor transactions happening through its popular e-commerce hub TikTok Shop, TikTok users can purchase digital coins to send virtual gifts to creators and hosts of livestreams that can ultimately be converted to cash, for example. Many people also list their Venmo, Cash App or other payment method in their TikTok bios so that individuals they connect with on the app can send them money off-platform. Features allowing users to pay each other directly through direct messages, or the app more generally, would help TikTok keep users inside its ecosystem and capture more value from those transactions.Fintech FocusBoth TikTok and ByteDance are hiring, in the U.S. and abroad, for roles focused on its financial services products, according to public recruiting posts. A number of the ByteDance leaders who are involved in its push into payments are former executives of JPMorgan Chase & Co., which previously partnered with the Chinese company to help it develop its payments infrastructure, despite national security concerns in years past from top American government leaders.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Earlier this year, TikTok and ByteDance closed a deal to transfer parts of their U.S. operations to American investors, an arrangement aimed at avoiding a nationwide ban and allaying national security concerns about a Chinese app used by more than half the U.S. This month, the Trump administration lifted restrictions on the use of TikTok on federal government devices, concluding the app was no longer a security risk.Still, some of TikTok’s payment tools have been central to lawsuits brought by state attorneys general alleging that the features have led to sexual and financial exploitation of children, and in some cases broken money transmission laws or facilitated money laundering.TikTok is not alone in making a push around social commerce. Elon Musk has in the past year made strides in turning X, formerly known as Twitter, into an “everything app” that includes financial services. Some creators on X have been able to test the new features, such as “X Money,” to send payments to one another.We apologize, but this video has failed to load.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.