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TikTok explores peer-to-peer payments via DMs, report says
TikTok is developing a peer-to-peer payment feature within its app, allowing users to send money via direct messages. The feature, found in the code of TikTok's U.S. app, could use TikTok Pay's existing capabilities. While still in early development, it represents TikTok's broader expansion into financial services, competing with platforms like Venmo and Zelle.
Key points
- TikTok is exploring a new feature for peer-to-peer payments via direct messages.
- These payments would utilize TikTok's existing Pay offerings available in Southeast Asia.
- The code reveals that recipients can 'tap to accept' payments, and senders can include messages.
- TikTok stated that the feature is not currently being tested, indicating it's in early development.
- This move follows TikTok's application to Brazil’s central bank for financial services approval.
- Competitors like Venmo, Zelle, and X (formerly Twitter) are also expanding into financial services.
Why it matters
- The trend of social media companies integrating financial services is increasing.
- In 2023, TikTok's focus on financial features aligns with its aim to diversify beyond social media.
- X's launch of X Money highlights the competitive landscape of social networks entering the payment space.
- By 2025, digital wallets and peer-to-peer payment systems are expected to be standard features in social platforms.
TikTok's potential introduction of peer-to-peer payments signifies its ambition to broaden its service offerings and compete in the evolving landscape of financial technology in social media, which is poised to grow significantly by 2025.