TikTok is developing a peer-to-peer money transfer feature for direct messages, according to code discovered in the current US iPhone app version. The functionality would allow users to send and receive payments with expiration timers, attach messages, and receive push notifications, operating through TikTok Pay, which already powers transactions in Vietnam, Malaysia, and Thailand. A TikTok spokesperson confirmed the feature exists but emphasized it remains in early development with no active testing underway.
The move extends ByteDance’s payments strategy launched in 2021 with Douyin Pay in China. TikTok users have already spent over 2.9 billion dollars in-app this year, surpassing YouTube, Facebook, and Instagram in US consumer spending. The company is actively recruiting for financial services positions, with several former JPMorgan Chase executives leading the initiative.
The development raises regulatory concerns given TikTok’s ongoing struggles policing unlicensed financial promotions, particularly around crypto and forex products targeting younger audiences, despite existing bans and inconsistent enforcement.
FXnCO Insight
Watch for intensified regulatory scrutiny around fintech licensing and consumer protection as TikTok’s payments ambitions collide with its checkered record on financial content moderation.
Source: Finance Magnates