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70% of Japan smartphone games bypass in-app payment to avoid US tech giants

2 days ago
  • #payment-systems
  • #smartphone-games
  • #japan-regulation
  • Nearly 70% of popular Japanese smartphone games use external payment systems to avoid high commissions from Google and Apple.
  • A new Japanese law, effective December, will require Google and Apple to open their payment systems.
  • Currently, game providers pay up to 30% commission for in-app purchases through Apple and Google.
  • Among top 30 best-selling games in 2024, 11 of 16 from domestic firms use external payment websites.
  • External transactions via game websites charge around 5% commission, much lower than Apple and Google's rates.
  • The in-app purchase market, valued at over 1 trillion yen, may see user discounts and higher profitability with external payments.
  • Mixi Inc.'s 'Monster Strike' saw users purchase 5% more items after introducing an external payment system.