While once known primarily as a platform for short-form videos, TikTok has rapidly transformed into a gaming and e-commerce titan. Now, all signs point to a broader financial services expansion, as the social media platform is reportedly exploring the addition of peer-to-peer (P2P) payments.
According to Bloomberg, TikTok is developing a feature that would allow users to send money via direct messages.
Early indications suggest that recipients could tap to accept payments, while senders would be able to include messages with payments, a là Venmo. There is even speculation that the company could utilize TikTok Pay, a mobile wallet that customers in Southeast Asia can use for TikTok Shop purchases.
Regardless of the delivery vehicle, P2P functionality would be a significant addition for TikTok, putting the company in competition with Venmo, Cash App, and Zelle.
Following the Strategy
While the details of the P2P feature remain unconfirmed, it would appear to align with TikTok’s recent moves into financial services. Earlier this year, the company submitted applications to Brazil’s central bank for two financial services licenses.
The first would allow TikTok to create self-use prepaid accounts for users, allowing them to hold balances and send and receive payments through the mobile app. The second would allow the company to lend capital to customers and connect lenders with borrowers.
Encompassing Payments in the Experience
TikTok Shop has already changed the way the platform fits into consumers’ lives. What began as a creator economy marketplace has rapidly evolved into a showcase for global brands—and increasingly a place where consumers can discover and purchase products without ever leaving the app. The immersive experience is designed to extend all the way to checkout, so it follows that TikTok would want payments to be part of that same experience.
The company can also capitalize on its deep social media ties with users to develop shopping and financial services relationships. This has become a common theme among social media platforms, as evidenced by the launch of the long-awaited X Money. The platform now offers P2P transfers, debit cards, and deposit accounts for X’s premium subscribers.
While questions remain about the demand for financial services capabilities among X customers, TikTok has demonstrated its ability to leverage its platform to expand into new markets. That could give the company an advantage if it decides to bring its P2P plans to fruition.
