After more than a year of tense negotiations, Apple and Chinese tech giant Tencent have reportedly struck a major deal. According to a report from Bloomberg, the agreement resolves a high-profile dispute over in-app payments, giving Apple a slice of the massive revenue pie from WeChat’s popular mini-games.
The core of the deal is this: Apple will begin handling payments and take a 15% commission on purchases made within WeChat’s mini-games and mini-apps. This is a significant development for both companies. For developers to qualify, they will need to agree to certain Apple software requirements, such as tools to help parents manage their child’s age-range information.
This 15% rate is half of Apple’s standard 30% commission for most App Store transactions. For Apple, this deal unlocks a brand-new and potentially massive revenue stream. Previously, many WeChat mini-games used payment systems that circumvented Apple’s framework, meaning Apple received no cut from those sales. Given that mini-games are a huge business—contributing over $4.5 billion to Tencent’s social network revenue in the last quarter alone—getting a 15% piece of that action on iOS is a clear win.
This agreement also helps to normalize Apple’s relationship with Tencent, which operates the indispensable WeChat “super-app” that over a billion Chinese users rely on for everything from messaging and paying bills to gaming. Apple had been demanding that Tencent close the very loopholes that allowed developers to bypass its payment system. This deal appears to be the compromise.
For Tencent, this agreement takes significant pressure off. Company President Martin Lau recently confirmed that talks were happening with Apple to make the “mini game ecosystem more vibrant.” This deal achieves that by providing a clear, official path forward for mini-games on the iPhone.
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