Apple Reaches Deal to Take Billions of Dollars in China's WeChat

Apple has reached a new agreement with Tencent that will allow the company to process payments and collect a 15% commission on purchases made inside WeChat mini games and mini apps on the iPhone, establishing a major new revenue stream in China after over a year of negotiations, according to Bloomberg.

Apple Logo Cash Orange
Under the arrangement, Apple will begin handling in-app payment processing for qualifying mini apps and mini games distributed inside WeChat, China's dominant all-purpose mobile platform. Developers participating in the system will need to adopt specific Apple software requirements, including a feature that allows parents to share a child's age range.

Unlike users in the rest of the world, most Chinese ‌iPhone‌ users do not access services by downloading separate apps from the App Store. Instead, they use WeChat as a single interface for services, utilities, and entertainment. These functions are powered by a vast network of mini apps contained entirely within WeChat.

Purchases made through these mini apps have historically not generated ‌App Store‌ commission because many developers direct users to external payment systems. As a result, Apple's new agreement gives the company a foothold in a major segment of Chinese mobile payments from which it previously received no revenue.

While the new 15% commission is half of Apple's standard 30% rate for many ‌App Store‌ transactions, Bloomberg estimates that the size of the WeChat ecosystem makes the agreement potentially worth billions of dollars to Apple. The agreement is expected to be disclosed publicly by the companies at a later date.

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Top Rated Comments

Stike Avatar
4 hours ago at 08:10 am
And now we are wondering what Tencent is getting from Apple in return...
Score: 10 Votes (Like | Disagree)
Love-hate ? relationship Avatar
3 hours ago at 08:26 am
what I find extremely hypocritical and beyond nasty is how compliant apple is with china , and didn't hesitate to ban and remove homosexual dating apps just a few days ago, yet fights tooth and nail when it comes to giving a wee bit of openness in the EU, much to the chagrin of US apple users , who, for some reason, see it with a bad eye.

there was a lawsuit and they had to pay roughly 100M (think it started in france), where they proved siri was listening to you , where apple used that data, and also sold it to third party contractors I believe.

they got a deal to push google by defaut in safari and spotlight web engine.

they don't give a flying **** about freedom, ecology, and arguably privacy and advertising. yet, perhaps in some sort of cognitive dissonance, the vast majority of the userbase seems to believe that apple is nice and trustworthy. I would admit they're probably the least worst of the devils, though it seems to be more of a demeanor they're showing thanks to heavy marketing tactics , nay brainwashing. go figure
Score: 9 Votes (Like | Disagree)
turbineseaplane Avatar
4 hours ago at 08:11 am
This is such an odd story.

So it's a payment processing deal?
For Apps distributed via WeChat (not the App Store)

...and at 15%!?

This feels like there's some big component we are not being told about.
Score: 9 Votes (Like | Disagree)
contacos Avatar
3 hours ago at 08:28 am
Damn, how many Labubu did Tim agree to buy in exchange
Score: 8 Votes (Like | Disagree)
turbineseaplane Avatar
4 hours ago at 08:14 am

As a result, Apple's new agreement gives the company a foothold in a major segment of Chinese mobile payments from which it previously received no revenue.

While the new 15% commission is half of Apple's standard 30% rate for many App Store transactions, Bloomberg estimates that the size of the WeChat ecosystem makes the agreement potentially worth billions of dollars to Apple.
I miss the Apple that was focused on amazing hardware, with polished software to match.
Score: 5 Votes (Like | Disagree)
surferfb Avatar
2 hours ago at 09:35 am

there was a lawsuit and they had to pay roughly 100M (think it started in france), where they proved siri was listening to you , where apple used that data, and also sold it to third party contractors I believe.
Just to be clear, what happened was that it came out Apple’s contractors ("third parties") were reviewing small samples of Siri recordings without users’ clear knowledge, as they had been hired to improve the "Hey Siri" functionality. When it came out, Apple halted the program, made it opt-in, and yes faced a lawsuit that it eventually settled (without admitting wrongdoing), while reiterating that recordings were anonymized and used only to improve Siri’s accuracy (which obviously you don't have to believe, but I see no reason to doubt them on it).

In other words, they were not selling the data to third parties (in fact, Apple was paying the "third party", not the other way around). They just had a contractor do the grunt work of analyzing Siri recordings to improve the feature rather than have Apple employees do it.
Score: 4 Votes (Like | Disagree)