The news: TikTok is considering adding a P2P feature to its US app, per a report by Bloomberg.

The feature would build on the TikTok Pay service available in Vietnam, Malaysia, and Thailand.

Lines of code suggest that users can “tap to accept” payments sent to them before an expiration date. Senders can be notified about the status of their payments via push notifications or an inbox message. Users will also be able to personalize payments with messages similar to Venmo and PayPal.

How we got here: TikTok follows other US social media companies trying to offer payment products.

• X has spent years trying to launch X Money, a financial services and payments suite.
• Meta was reportedly considering launching its own stablecoin later this year and in April started facilitating USDC payouts for creators.

Why this matters: If TikTok can get users to adopt TikTok Pay, it can capture a valuable chunk of payment volume, especially from influencers and small businesses that already accept tips and payments from followers by posting their Venmo and PayPal handles.

• US users spend more time per day on TikTok than any other social platform, per our forecast.
• 18- to 24-year-olds—prime P2P acquisition targets—will spend an average of 1 hour and 9 minutes a day on the app this year. 

We forecast US mobile P2P transaction value will hit $1.647 trillion this year. 

Implications for P2P providers: The runway for starting a P2P service in the US is long. Providers have to get a money transmitter license in every US state plus Washington, DC—a time-consuming process: More than three years since it started applying for licenses, X has 42, per the Milken Institute. 

While social media brands could deliver convenient, mobile-first payment services, strong daily scrolling habits don’t always translate into the kind of trust required to hand over bank account information.

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