Key TakeawaysHidden code in TikTok’s U.S. iPhone application shows work on peer-to-peer payment capabilities within DMsDevelopers discovered the feature embedded in the app, though it hasn’t entered testing phasesThe payment system would utilize TikTok Pay infrastructure, currently operational across Southeast Asian marketsStock prices for PayPal and Western Union declined following the revelationByteDance, TikTok’s owner, has pursued fintech expansion initiatives dating back to 2021TikTok has begun development on functionality enabling users to transfer funds directly through the platform’s messaging system. Bloomberg reported this discovery after examining code embedded within the current version of TikTok’s iPhone application available to U.S. users, rather than through any official company announcement.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, 2026This payment capability would operate using TikTok Pay infrastructure, a system already functioning across Vietnam, Malaysia, and Thailand. In those markets, the service facilitates purchases through TikTok Shop and handles various in-platform financial transactions.A company representative acknowledged that no testing of this feature has commenced in any region, indicating the project remains in preliminary development stages.Should TikTok proceed with deployment, the functionality would enable monetary exchanges between users within their message threads. Those receiving funds would need to accept the transfer before a designated deadline, while senders would receive confirmation through push notifications or their message center.Analysis of the application code reveals users could attach text messages alongside their payments. This design mirrors PayPal’s Venmo platform, which permits users to annotate their financial transactions with custom messages.Market Response From PayPal and Western UnionPayPal and Western Union experienced significant stock price declines Tuesday following Bloomberg’s publication. The market reaction signals investor apprehension about potential competition from TikTok in the money transfer sector.With approximately 2 billion users engaging with the platform each month worldwide, TikTok possesses substantial reach should it expand into U.S. financial services.ByteDance, headquartered in Beijing and serving as TikTok’s parent organization, launched its payment ventures in 2021 through Douyin Pay within China. This system allows users to connect banking institutions, complete transactions, and provide gratuities during live broadcasts.With a valuation exceeding $550 billion, ByteDance continues recruiting for financial technology positions across U.S. and international markets. The corporation projects revenue growth reaching approximately $186 billion, representing an increase from 2024’s $155 billion.Social Media Platforms Increasingly Target Payment ServicesElon Musk’s X, the platform previously known as Twitter, has similarly pursued financial service development. Select content creators on X have already experimented with X Money, a person-to-person payment system that Musk announced would become publicly available in April.ByteDance might decide against bringing the peer-to-peer payment feature to American markets. However, the engineering development evident in the application code demonstrates serious consideration of this capability.TikTok Pay remains confined to Southeast Asian territories without availability for U.S. consumers. Any American rollout would encounter regulatory scrutiny considering ByteDance’s Chinese connections.This code discovery reinforces TikTok’s established trajectory of expansion beyond video content into e-commerce and financial technology, sectors receiving sustained investment over recent years.The post TikTok Building Venmo-Style Payment System in DMs, Code Reveals appeared first on Blockonomi.