'TikTok' Invades the World of Finance... Seeks to Compete with Banks

TikTok is nearing the transfer of conversations on its platform to a new level that goes beyond exchanging messages and videos, as it works on developing a feature that allows users to send and receive money directly through private messages, a move that could strengthen its presence in the financial services sector.

According to a Bloomberg report, the feature, if officially launched, would rely on TikTok Pay, the platform’s payment service, already available in several Southeast Asian countries to complete purchases via TikTok Shop.

The report revealed indications of the anticipated service within the hidden code in the current version of the TikTok app for iPhones in the United States.

The code suggests that the recipient of the funds will be able to click an “Accept” option to complete the transfer, while the sender will be able to attach a message to the transferred amount, in an experience closely resembling the functionality of the Venmo service.

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However, TikTok confirmed to Bloomberg that the feature is not currently undergoing testing, indicating that it is still in the early stages of development.

There is currently no confirmed information regarding the launch date of the peer-to-peer money transfer service or whether the platform will roll it out widely.

This is not TikTok’s first attempt to strengthen its presence in the financial services sector. Earlier this year, Reuters reported that the platform had applied to the Central Bank of Brazil for approval to operate as a fintech company, offering services including lending and payments.

In recent years, TikTok has expanded its services beyond short video sharing, adding an advanced search engine, TikTok Shop, a map for discovering local places, games, hotel bookings, and more.

If the money transfer service is launched, TikTok will enter direct competition with digital financial services such as Venmo and Zelle.

It is also not the only social media platform moving into this space. The platform X, formerly known as Twitter, has launched X Money, which allows users to send money to each other.