Apple secures 15% cut from Tencent’s WeChat mini app revenue

Tencent has struck a deal with Apple under which Apple will process all payments for WeChat mini games and mini apps, taking a 15% commission on every purchase.
Pei Li for Bloomberg News:
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Resolving the issue, under negotiation between the two tech titans for over a year, opens a new revenue stream for Apple and takes pressure off Tencent. Apple had demanded Tencent close loopholes that app creators employed to funnel users to external payment systems, circumventing the iPhone’s typical 30% commission.
To qualify, developers will need to sign up to certain Apple software requirements, such as one to help parents share their child’s age range, one of the people said.
Mini games, contained entirely within WeChat — which is now used by 1.41 billion people every month — contributed to 32.3 billion yuan ($4.5 billion) in social network revenue for China’s most valuable company in the September quarter.
Tencent disclosed in August last year that it was talking to Apple about “economically sustainable” and fair terms to let the US company take a share of mini game and app sales on iPhones. Mini games, in particular, have been steadily growing in popularity, though the previous absence of an agreement meant that Apple wasn’t receiving any income from purchases.

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MacDailyNews Take: Mo’ money, mo’ money, mo’ money!
Apple built the Mac. Apple built the iPhone. Apple built the iPad. Apple built the App Store. Apple created the most verdant ecosystem ever created for developers by far… If anything, Apple takes too little of a cut for all that the App Store provides developers. — MacDailyNews, June 21, 2020

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