Ostensibly the update is about driving a culture of inclusiveness and offering an olive branch to the trans community.
"We haven't had the right tools to serve our diverse community in the past, but that changes today," the company wrote in a blog post announcing the update.
Transgender people have previously reported facing abuse on the app and being reported to Tinder administrators for being trans.
"In addition to this new feature, we are learning to be a better ally to transgender and gender nonconforming communities by allocating additional resources to our support team, which includes educating our staff about the challenges facing these communities," the company said.
Of course from the Tinder's point of view, it also doesn't hurt to broaden the user base of the app.
The trans community has been pushing for greater awareness of non-binary gender identities in recent years. The Australian Sex Survey carried out by researchers at The Queensland University of Technology earlier this year provided 33 gender options for those filling out the survey.
Tinder users can now add more information to their profile by tapping "I am" in their profile and selecting "more" to see the new range of identities.
CEO Sean Rad said the company has been working on the changes for some time but the political climate in the US following the recent presidential election has reinforced the need to provide a diverse and inclusiveness platform.
"The tone of this election made us really think about what conversations are appropriate on and off our platform," he told The Observer.
"'Locker room talk' is not acceptable on or off Tinder. Harassment of any type, toward transgender users or otherwise, will not be tolerated. And we will be rolling out more features to address this."