Apple has reached an agreement with Tencent, the owner of the ubiquitous Chinese application WeChat, to monetize in-app purchases within the WeChat ecosystem on iOS devices. This arrangement addresses a long-standing issue where Apple received no revenue from transactions occurring within WeChat’s integrated ‘mini-app’ and gaming platforms, which circumvented Apple’s standard App Store payment processing.
Under the terms of the agreement, Apple will now process payments for in-app purchases related to WeChat games and applications within China. In return, Apple will receive a 15% commission on each transaction, as reported by Bloomberg. This represents a significant shift from the prior situation and is expected to generate substantial revenue for Apple.
Given WeChat’s vast user base in China, estimated at 1.41 billion monthly active users, this agreement has the potential to yield hundreds of millions of dollars annually for Apple. The finalized deal follows over a year of negotiations between Apple and Tencent. The 15% commission rate represents a concession from Apple, whose standard commission rate for developers is 30%. However, the strategic advantage lies in capturing revenue from a previously unmonetized market segment.
