TLDR
- TikTok is developing peer-to-peer payments through direct messages in its U.S. app
- Code found in TikTok’s iPhone app reveals the feature, which is not yet being tested
- The feature would work through TikTok Pay, already live in Southeast Asia
- PayPal and Western Union shares dropped after the news broke
- Parent company ByteDance has been expanding into fintech since at least 2021
TikTok is working on a feature that would let users send money to each other through direct messages. The feature was not announced by the company but was uncovered in code hidden inside TikTok’s current U.S. iPhone app, according to Bloomberg.
JUST IN: TikTok is exploring a P2P payments feature with in-message transfers, notes, and status alerts, currently in early development and not tested in any market. $BTC, $ETH (note: no guarantees on launch) pic.twitter.com/rUshwY5O2s
— Bpay News (@bpaynews) August 19, 2026
The payment feature would run through TikTok Pay, which is already live in Vietnam, Malaysia, and Thailand. There, it is used for TikTok Shop purchases and in-app transactions.
A TikTok spokesperson confirmed the feature is not being tested anywhere yet, meaning it is still in early development.
If launched, users would be able to send and receive money inside direct messages. Recipients would tap to accept payments before an expiration date, and senders would be notified through push alerts or their inbox.
The code also shows an option to include a message with a payment. That would make it similar to PayPal’s Venmo service, which lets users add captions to transactions.
PayPal and Western Union React to the News
Shares of PayPal and Western Union both fell sharply after Bloomberg published its report on Tuesday. The drop reflects investor concern that TikTok could compete directly with established money transfer services.
TikTok has roughly 2 billion monthly active users globally. That user base gives the platform a large starting point if it moves forward with financial services in the U.S.
ByteDance, TikTok’s Beijing-based parent company, first entered payments in 2021 with Douyin Pay in China. That service lets users link bank accounts, make purchases, and send tips during livestreams.
ByteDance is valued at over $550 billion and is hiring for fintech roles in the U.S. and abroad. The company expects its revenue to grow to around $186 billion, up from $155 billion in 2024.
TikTok Is Not the Only Social Platform Moving Into Payments
Elon Musk’s X, formerly Twitter, has also been building financial services features. Some creators on X have already tested X Money, a peer-to-peer payment tool, which Musk said would go live in April.
ByteDance may not ultimately release the peer-to-peer feature in the U.S. The engineering work found in the app code suggests the company is at least exploring it seriously.
TikTok Pay is currently limited to Southeast Asia and has not been made available to U.S. users. Any U.S. launch would also face regulatory questions given ByteDance’s ties to China.
The feature discovery adds to a pattern of TikTok expanding beyond video content and into commerce and financial tools, areas where it has been investing for several years.
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