Apple, Tencent reach ‘understanding’ over WeChat tips

The decision was seen as Apple’s move to try to increase revenue from in-app purchases.

A woman is reflected in a Apple store logo in San Francisco, California, U.S., August 21, 2017. REUTERS/Kevin Coombs/Files (REUTERS)

Resolving its long standing issues with Tencent, the owner of WeChat, Apple has now allowed the social platform to send tips over the popular messaging app.

According to a report in The Wall Street Journal, WeChat creator Allen Zhang revealed Apple and China-based multinational conglomerate Tencent have reached an agreement over tips.

"In the past, companies like Apple might have had a difficult time understanding China-specific features. We now all share a mutual understanding and we'll soon bring back the 'tip' function," Zhang was quoted as saying.

WeChat disabled its built-in tipping system last year after Apple asked the creators of popular messaging apps in China to disable 'tip' functions to comply with App Store rules.

The decision was seen as Apple's move to try to increase revenue from in-app purchases.

Tips are a popular way for Chinese social network users to compensate content creators and Apple wanted a 30 per cent cut of that revenue. It is not clear if Apple will still take a small cut on tips.

Last year, Apple and Tencent reached an agreement allowing the US-based company to allow payments through WeChat for its App Store and Apple Music.

Around 963 million people worldwide use WeChat -- an instant messaging application similar to WhatsApp but with a wider range of services, including a payment platform.