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Rumor: Apple's China App Store to Support Calling Credit Payment, 4/19/14

An industry source has revealed that US consumer electronics company Apple has signed an agreement with China Mobile (NYSE: CHL; 0941.HK) to allow Apple smartphone users to purchase items on Apple's China App Store using money charged to China Mobile accounts. China Mobile customers will receive an SMS when purchasing apps or in-app items with calling credit to confirm payment. Senior managers at multiple mobile gaming companies in China have confirmed the rumor. Apple's App Store has traditionally only supported credit card-powered payments for paid app downloads in China.

Android mobile gamers in China typically have three options for mobile checkout, namely credit cards, third-party payment processor Alipay, and call credit payments. China Mobile receives around 30% commission for payments completed using mobile call credit, with the remaining 70% split between developers and channel operators at ratios of 3:4 or 4:3. Apple's China App Store began accepting RMB payments for apps in 2011, with developers receiving 70% of revenue from app downloads.

Keywords: mobile gaming China Mobile smartphone wireless app store Apple CHL third-party payment 0941.HK mobile payment


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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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