Beijing Review

Jiang Debin (www.rednet.cn):

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In Apple’s iOS, no matter what app you are using, when you want to buy things like music, video and novels, you can do so only through the payment channels provided by Apple’s App Store. This makes it possible for Apple to charge 30 percent commission from app developers.

By promoting the tipping function, WeChat aims to encourage the creation of original content. Readers’ tipping can motivate content creators, and monetary rewards have become a source of income for them. So far, WeChat has not deducted a penny. All of the revenue has gone to the public account operators. With WeChat’s tipping function shut down, public account operators’ revenues will be cut and WeChat Pay transactio­ns will be reduced.

So far, apps like Toutiao, Weibo and Alipay, which also have iOS apps with tipping functions, have not been affected by Apple’s new rules, but it’s unknown whether Apple will take further action. As for WeChat, although the tipping function remains on WeChat’s Android version, a decline in tipping revenues is certain.

Apple’s App Store is a channel through which users must access apps; even the downloadin­g and installing of WeChat depend on the App Store. Therefore, Apple must strictly control the in-app purchase payment channels to safeguard its profit streams.

However, WeChat is enriching its functions rapidly. It is now developing into a multi-function and even full-function platform. Boasting a huge number of users, WeChat is showing a tendency to replace Apple’s many functions, particular­ly in terms of mobile payments. Apple Pay is completely overshadow­ed by WeChat Pay and Alipay and is now being further marginaliz­ed. The dispute over WeChat’s tipping function is

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