New terms and conditions are not good for Wechat
Apple with WWDC and announcements made the developers and Apple users excited about coming things. From ‘Planet of Apps‘ to iOS 11 Apple has unloaded many things at the stage in California in front of worldwide developers. But with these gifts, the company also gave a tip to China by updating its Policies and Guidelines.The newly added policies by the Apple state that all the online tipping from China must go through Apple first.
The policies introduced by the Apple is largely targeting China's most popular chat app WeChat which is responsible for peer-to-peer online payments or ‘ tips’ online.
Apple made it clear what an iOS app can do and can't do but didn't put much light on the tipping class. According to the added clause, any tipping is considered as the in-app purchase from now onwards. Every tipping made by the user will go to the App Store payment system.
In China, tipping is a very popular trend in apps where a user pays some money to the content maker as ‘thank you ‘ or appreciation via the mobile wallet.Tipping over the live streaming videos and WeChat is very much popular in China. Now for the iOS apps user allowed to purchase digital coins from WeChat via Apple Payment system. Then these coins will be sent to the creators or writers as donation and Apple collect 30% of the donation.
If we look at the WeChat collection from the online tipping trend in China it collects a huge amount. WeChat has 938 million users currently. From a reported issue by China Academy of Communications Technology, almost 10.7% users have used the tip feature. Among this group, 37% of the user tend to donate five to ten yuan every month.
Considering the fact Apple users are wealthier than Android ones, tipping isn't a big deal for them. This is a big business consistently going out from the Apple’s hand in China. It is a big question now how WeChat gonna responds to this new rules added by the Apple. WeChat yet did not respond to this and it will interesting to see will WeChat going to accept this?. Another question arises if WeChat accepts this then how it gonna manage the donation cut as WeChat serves as a middleman between the sender and the receiver. There are appropriate chances that WeChat gonna disturb the final amount of donation after Apple cut.
This is sure this action from Apple surely going to tense the relation between the world the giant and China’s top chat app.
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