Chinese social-networking apps change 'tipping' functions due to Apple restrictions

Zhang Jin China Plus Published: 2017-05-23 14:47:26
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Several Chinese social-networking apps have changed their 'tipping' functions on the iOS system, with Apple now demanding that all payments be conducted through its in-app purchases (IAPs), reports thepaper.cn.

The 'tipping' functions on Chinese social-networking apps give users the option of donating a small amount of money to authors and photo or video providers on their individual accounts.

The Wall Street Journal reported last week that Apple had told several Chinese social-networking apps to disable their 'tipping' functions, as it considers the tips as in-app purchases.

The same article on Toutiao app is shown on iOS (L) and Android systems. The 'tipping' function on iOS system has been removed. [Photo: thepaper.cn]

The same article on Toutiao app is shown on iOS (L) and Android systems. The 'tipping' function on iOS system has been removed. [Photo: thepaper.cn]

News app Toutiao is among a growing number of companies, which have recently shut down their 'tipping' function for article writers on the iOS operating system. The option through Android remains the same, reports thepaper.cn.

Also, on Q&A app Zhihu, users are now only able to pay through IAPs.

If app developers refuse to make changes according to Apple's rules, their apps will not be upgraded, or could even be removed from App Store, according to the Wall Street Journal report.

Apple charges a 30 percent commission for all purchases made through IAPs.

Last month, Tencent's instant messaging service WeChat shut down its 'tipping' function on iOS after failing to reach an agreement with Apple.

In China, payment methods approved by Apple's App Store include Alipay and UnionPay debit or credit cards, but not WeChat Pay.

The Wall Street Journal is quoting a Tencent executive as complaining "We don't charge anything as the platform, but Apple gets 30 percent for doing nothing."

Some observers suggested that Apple wants to earn more money from Chinese iPhone users, as its Apple Pay program struggles to attract Chinese customers, according to thepaper.cn.

The Wall Street Journal is quoting insiders as saying that WeChat is negotiating with Apple to find a solution to their dispute.

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