Media company MIXI recently announced that their long-running mobile game Monster Strike now supports “out-of-app” payments. Instead of making purchases directly through the Apple or Google Play stores, players will now be able to use App-Pay, an online payment service operated by Japanese company Digital Garage, to buy currency and other in-game items (as reported by Otaku Soken).
As we’ve previously covered on the site, many Japanese mobile developers have recently been leaning into the trend of adopting “out-of-app” payment systems which allow for processing payments outside of the games’ designated app stores. One of the main catalysts for this market shift is Japan’s Smartphone Software Competition Promotion Act, which was passed in June 2024. According to Mori & Partners, the Act was created as a means to regulate and prevent IT giants’ gatekeeping practices that suppress market competitiveness and consumer choice. Payment flexibility and allowing developers to choose their own alternate solutions is one of the key topics covered by the Act.
In-app purchases for mobile games are usually required to go through platforms on which the game is published, like the App Store or Google Play Store. However, the two major platforms charge a maximum transaction fee of 30% (15% in case of a smaller company or developer), which is a considerable chunk of profit taken from the developer. On the other hand, App-Pay only charges a 5% transaction fee – a much more economical choice. And it seems to be quite popular among developers, given that, aside from Monster Strike, the out-of-app payment processor is currently in partnership with almost 40 other mobile games. Apparently, in order to make up for the difference in transaction fees, Monster Strike is offering special free in-game items and benefits for users who make purchases via App-Pay.
On a related note, though their reasons and intentions may differ, several Japanese content platforms have been making progress in diversifying payment options lately. Notably, game and comic platforms DLSite and Toranoana have recently announced their alternative independent payment services as a replacement for Visa and Mastercard payments.
