Update: Apple did not strike a special deal with Tencent. Instead, Tencent is using Apple’s new App Store Mini Apps Partner Program, which launched today for all developers. This means Tencent must apply like everyone else.
Developers who join the program earn 85 percent of qualifying in-app purchase sales inside their mini apps. The earlier Bloomberg report suggested Apple negotiated a unique arrangement with Tencent, but that turned out to be misleading. This program is open to every developer, and it gives all of them the same opportunity.
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Original story below:
Apple faces pressure on its App Store commission in many countries, yet it now gains a major new source of income in China. A new agreement with WeChat brings Apple a steady stream of commission from mini apps inside the country’s most dominant platform. This shift matters because most iPhone users in China rely on WeChat instead of the App Store for everyday tasks.
Chinese iPhone users spend most of their time inside WeChat. They open it for almost everything: booking taxis, paying bills, ordering food, buying tickets, chatting, sending money, or even checking a bank balance. A survey once showed that 95 percent of users would rather give up the iPhone than lose WeChat. This heavy reliance created a long-standing problem for Apple because purchases made inside WeChat mini apps usually avoided App Store rules.
Bloomberg reported that Apple and Tencent spent more than a year negotiating a fix. Tencent, the company behind WeChat, faced pressure from Apple to stop mini app developers from pushing users to external payment systems. These workarounds meant Apple earned nothing, even though the activity happened on iPhones. Now, both companies have settled on a structure that brings Apple into the payment flow.
The New Agreement
Under the deal, Apple will handle payments inside WeChat mini games and apps and will take a 15 percent cut. One source familiar with the talks said, “Tencent Holdings Ltd. has struck a deal with Apple Inc. that will see the iPhone maker handle payments and take a 15 percent cut of purchases in WeChat mini games and apps.” Another source added that developers need to follow certain Apple software rules, such as features that help parents manage their child’s age range.
The 15 percent fee is half of Apple’s usual 30 percent rate. Even so, it opens a revenue stream that Apple never had access to before. Mini games inside WeChat have become a major business. They helped generate 32.3 billion yuan in social network revenue for Tencent in the September quarter. Until now, Apple has received none of it.
Tencent said last year that it was discussing “economically sustainable” terms with Apple. Mini games continued to grow, yet the lack of a deal blocked Apple from earning commissions. With this new agreement, Apple gains money from a huge part of China’s digital economy while Tencent removes pressure from a long-running dispute.
A Shift in Apple’s China Strategy
In recent years, Apple has lowered its 30 percent rate in some regions and allowed exceptions for certain purchases. This deal with Tencent brings a similar shift to China. It sets a precedent that could shape how software payments work on iPhones in the country. It also helps Apple repair its relationship with China’s most influential social platform.
For Apple, this move delivers billions in potential revenue. For Tencent, it brings stability after years of tension. And for developers, it outlines clear rules to sell inside WeChat while staying within Apple’s system.
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