A Byte Of J.P. Morgan's TikTok Dance

TikTok is in the news again! This time for its parent company, ByteDance’s partnership with the American-based global leader in financial services, J.P. Morgan. Reportedly, J.P. Morgan is helping ByteDance grow in the fintech space with a payments solution that would see the Chinese company expand into more markets and connect with millions of users.
 
Glenn Gerstell, who is a former General Counsel of the National Security Agency (NSA), described the move as not problematic on its face. However, warned that helping ByteDance in an industry that has witnessed the huge presence of Chinese companies like Alibaba’s Alipay and Tencent’s Tenpay is treading on dangerous grounds.

 
Speaking to Forbes, he said, “The bigger picture of the potential threat posed by Chinese payment mechanisms… absolutely presents a genuine security concern for the United States.” Although the partnership is “not a black-and-white [issue],” he added, “it steps along a gray continuum.”

Gerstell further asserts that a Chinese company facilitating payments does pose national security risks. While one activity in itself may not be that terrible, he thinks Americans don’t really appreciate the extent of it and the potential risks.
   
On the other hand, reports reveal that J.P Morgon chose to say silent on the issue. However, speaking on the global payments team, the spokesperson for ByteDance, Jennifer Banks said it “is an internal function that supports our businesses' needs” and added, “this department works to ensure third parties, including partners and vendors, are compensated for their work.”

Given the mixed reviews from the general public and governments for TikTok and ByteDance, what do you think about the parent company’s move into fintech? Let us know in the comments below!