#Japan #Tokyo #Tencent Games #NetEase Games #Spice Smart

The Rise of External Payment Systems in China’s Gaming Industry

In a significant move, Spice Smart has conducted an extensive study analyzing the usage of external payment systems by leading Chinese gaming companies. The focus was on major players like Tencent Games, NetEase Games, and miHoYo. The findings provide a comprehensive overview of current trends, utilizing examples of external payment practices across these companies and highlighting five defining features.

Overview of the Research

The research period spanned from January to March 2026, covering noteworthy external payment practices among representative gaming firms in mainland China. The scope included organizing the latest fee policies from major platforms like App Store and Google Play and comparing various strategies adopted by these companies. The study revealed the unique characteristics of external payments in the Chinese gaming sector.

Key Findings: Features of External Payment Systems

One of the paramount findings is that many major Chinese gaming companies have embraced their own external payment systems. Among giants like Tencent and NetEase, integrated platforms have been developed that allow for comprehensive management of multiple titles. In contrast, medium-sized companies often manage external payments on a title or site basis. This variability highlights how differently companies respond to consumer payment preferences.

External payment systems are not solely designed to serve as payment methods; they incorporate features like the distribution of coupons, rewards points, and sales of exclusive items. By combining these elements, companies are not just facilitating transactions but also creating engaging customer experiences. For example, promotional strategies such as bonus systems and raffle events, which require purchases for participation, can differ greatly in effectiveness depending on a company's scale.

The analysis identified five major characteristics prevalent within the external payment systems of Chinese gaming enterprises:
1. Diverse Product Offerings: These systems enable purchases not just of in-game currencies but also item packs and rare items.
2. Integration with Mobile Payment: The prolific use of popular Chinese payment methods like WeChat Pay and AliPay is evident.
3. Promotional Schemes: Various strategies are in play, including discounts and lottery events tied to purchases.
4. Variable Implementation Based on Company Size: There is a noticeable disparity in how large and medium enterprises implement these systems.
5. Evolutionary Changes Post Fee Reduction: Companies’ external payment strategies are evolving in response to changing fee structures from major platforms, such as Apple's recent fee cut.

Impact of Fee Reductions on the Industry

In March 2026, Apple announced a reduction in the App Store fee from 30% to 25%, followed by Google’s announcement of lowering its standard fee as well. This shift presents a promising opportunity for small to mid-sized developers, potentially enhancing profitability and facilitating increased customer rewards. It may also bolster larger developers’ overseas expansions, allowing them to leverage knowledge gained in domestic markets in international territories.

Additionally, major concerns are arising regarding alternative distribution models. With high fees from Android-based third-party app stores persisting, many companies are shifting towards their official sites or free distribution platforms like TapTap. This could lead to a diversification of revenue models, incorporating season passes and one-time DLC payments.

Future Directions of Research

Spice Smart intends to continue monitoring the dynamics of external payment systems within the Chinese gaming market. The detailed report includes an analysis of all 15 companies studied, summarizing their unique external payment features and operational statuses. Interested parties can access this in-depth report through Spice Smart’s operational solution, LIVEOPSIS.

About Spice Smart

Established in July 2015, Spice Smart focuses on research and analysis especially centered around the mobile gaming market. It conducts thorough investigations within global markets, emphasizing regions such as Japan, China, Korea, and the United States. Through its service LIVEOPSIS, it provides tailored research reports to its registered firms.

For more insights, visit: LIVEOPSIS

Contact Information

For inquiries regarding this release, please reach out to: [email protected]. Our team can respond in Japanese, English, Simplified Chinese, Traditional Chinese, and Korean.