The company announced on Thursday that it will cut its standard commission on in-app purchases and paid transactions to 25%, down from 30%. The change takes effect on Sunday.

Developers in Apple’s small business and mini-apps partner programmes will also pay less, with commission dropping to 12% from 15%.

Mini apps are smaller programs that run inside larger platforms such as WeChat, operated by Tencent.

For Chinese developers, the decision removes part of what many have called the “Apple tax”. Companies that run so-called super apps, including Tencent and ByteDance, host large numbers of these smaller applications built by outside developers.

State-owned newspaper Economic Daily says the fee cut could save Chinese developers more than 6 billion yuan, or about $873 million, each year.

“This adjustment will … improve consumption choices and information transparency,” the newspaper said.

“The premium for digital goods and services on the iOS side will be gradually eliminated, and the prices of membership subscriptions, game recharges, live broadcast tips, mini programs and other scenarios are expected to decrease, which is expected to save consumers up to nearly 1 billion yuan per year.”

Apple did not directly link the decision to regulatory pressure. Still, the change follows discussions with Chinese authorities about App Store fees and policies.

The new commission rates start on March 15, which is World Consumer Rights Day. Chinese state media usually use the day to highlight complaints against companies accused of harming consumer interests.

The App Store commission has been called out around the world, with regulators in the European Union forcing Apple to lower developer commissions to between 10% and 17% in 2024 under new digital market rules.

Pressure has also increased in the United States, where Apple now allows alternative in-app payment methods after legal challenges.

China has taken a close look as well, and authorities have considered whether Apple App Store practices violate antitrust rules, and Chinese consumers filed a complaint over the fee structure last year.

Rich Bishop, founder of AppInChina, which helps foreign developers publish apps in China, said regulators have been involved in discussions with Apple.

“In China’s case, (Apple) have been talking with the IT ministry and other departments, and has been requested or pressured ‌to reduce ⁠their fees,” he said.

The change will apply to Chinese companies and also to international developers whose apps appear on the China App Store.

One example is Duolingo, which Bishop said generates about $50 million in annual revenue from Chinese users.

Apple already adapts its App Store policies to comply with Chinese regulations. In the past, the company removed virtual private network apps after requests from internet regulators.

More changes could come and Chinese authorities may eventually require Apple to collect App Store revenues inside the country rather than overseas. This would increase regulatory oversight of foreign apps operating in China.

The seed funding, which will also facilitate the expansion of Curacel into North Africa, included Tencent, AAF Management (invested in Sure, Flutterwave), Elefund (invested in Robinhood, Pie Insurance and Sure), Blue Pointe Capital Management,  Pioneer Fund, Olive Tree Capital and Y Combinator, as well as James Park (CEO of Fitbit), Olugbenga ‘GB’ Agboola (CEO of Flutterwave), Babs Ogundeyi (CEO of Kuda) and other strategic investors. Top executives from Covergenius, Zopper and Pie Insurance will also join Curacel’s advisory board as part of the round.

The combination of a fast growing population, a rising middle class and increasing access to financial services across the continent means more Africans have the opportunity to experience a wider range of products and services.

From buying cars to accessing accommodation, these experiences come with various risks and insurance companies play a huge role in making it easier to manage the risks and enjoy these experiences with confidence. However, with insurance penetration across the continent still under 3 percent, many Africans are having to take on these entirely by themselves. 

At the same time, the paper-based approach and antiquated technology that powers many insurers’ processes is time-consuming, unduly expensive and prone to fraud and waste. African insurers lose more than $12 billion per year to fraudulent, wasteful and abusive claims, which makes them understandably cautious and risk-averse with the customer they choose to serve. 

Curacel makes it easier for insurers to distribute their products, automate their claims processes, and drive revenue growth by giving them easy-to-use technology solutions that have been specifically designed to drive up insurance inclusion on the continent. With Grow, Curacel’s embedded insurance product, more than 100 banks, fintechs, logistics companies and other tech-enabled companies, including ALAT (Nigeria’s first digital bank), Providus, PalmPay, Float, etc and others are empowered to increase their recurring revenues by offering digital insurance products that are seamlessly embedded into their existing products and services, driving much-needed insurance penetration and customer loyalty. 

Leading insurers like AXA Mansard, Liberty Health, Old Mutual and Jubilee Heath also leverage Curacel’s market leading technology to improve the efficiency and accuracy of their claims processes. The company’s AI-powered infrastructure means claims can be submitted and processed in real time, helping insurers to reduce their claims cycle by more than 70 percent and process up to 10x more claims. 

Curacel has processed more than $100 million worth of claims, working with more than 20 insurers and more than 5,000 service providers in 8 countries across the continent. In 2022, Curacel grew its transaction volume by 600 percent and increased its revenue by 500 percent. Starting with Egypt and Morocco, the new funding will enable the company to roll out its services in North Africa and deepen its presence in other parts of the continent.

According to Henry Mascot, CEO and co-founder of Curacel, “We are bullish on the potential of the right technology in the right places to close the protection gap across Africa and emerging markets. It is an exciting time for us as we secure the capital to deliver the vision and onboard the people who have built these technologies at scale in more mature markets, and we are looking forward to delivering more technology solutions to drive up insurance inclusion.”‍

Omar Darwazah, Managing Director and General Partner at AAF Management, said “at less than 3%, the insurance penetration rate in Africa is one of the lowest in the world, presenting an incredible market opportunity for Henry and the team at Curacel to bridge that insurance gap. We are excited to participate in the company’s Seed round and join Curacel’s mission in building easy-to-use technology solutions for insurers to distribute their products on the continent.” 

Serik Kaldykulov, General Partner at Elefund, said “Africa remains a relatively untapped market when it comes to insurance and technology presents the best opportunity to reach new users and deliver excellent services. Curacel has built a suite of solutions and an impressive track record of success that makes us very excited to be supporting them on their mission to use technology to drive up insurance inclusion in Africa.”