Fortnite’s mobile app is returning to iPhones in Europe and Android devices worldwide, four years after it was pulled from Apple and Google’s app stores in a high-profile antitrust fight.

The market for mobile apps/mobile payments is going through some big changes. Apple and Android phones will be required to support alternative app stores to pay and download mobile services and players such as Epic are building competing mobile app stores thanks to regulatory changes.

The mobile content payment landscape is on the cusp of a seismic shift, driven by recent regulatory changes that are set to reshape the way users interact with mobile app stores. At the heart of this transformation is the European Union’s Digital Markets Act (DMA), a piece of legislation aimed at curbing the dominance of Big Tech and fostering competition within the digital marketplace.

This development is particularly significant for mobile payments, as it opens the door to alternative payment systems and app stores, fundamentally altering the ecosystem that has been dominated by Apple and Google given their position on smartphone operating systems.

The return of Epic Games' Fortnite to the iOS platform in Europe and Android devices worldwide is emblematic of this change. Four years after being removed from Apple's App Store and Google's Play Store in a high-profile antitrust battle, Fortnite’s comeback marks a victory for Epic Games and a broader shift in the industry.

The dispute, which began when Epic Games bypassed the mandatory in-app billing systems imposed by Apple and Google, highlighted the stranglehold these tech giants have over mobile content distribution and payments. By offering its own payment systems, Epic aimed to challenge the fees charged by these platforms on digital purchases —considered high at up to 30% of the user transaction value.

The introduction of the DMA has forced Apple and Google to reconsider their business models, especially regarding how they manage app stores and payment systems. Tim Sweeney, CEO of Epic Games, hailed the regulation as a turning point, asserting that "the tide is turning" as these digital gatekeepers face increasing pressure from regulators and courts around the globe. This sentiment underscores the DMA's potential to open up the mobile app distribution to more players by enabling alternative app stores to thrive and offer more favourable terms to developers and consumers alike.

With the launch of the Epic Games Store on mobile, alongside other alternative app stores like Aptoide and AltStore, we are witnessing the early stages of a more diverse and competitive app ecosystem. These platforms not only provide more choices for consumers but also foster a more developer-friendly environment. As Sweeney pointed out, Epic Games is committed to supporting every store that offers fair terms to developers, recognizing that "a rising tide lifts all boats."

For the mobile payment industry, it a time to pause and reflect. The emergence of new stores might provide new billing models and more incentive for mobile service creation. On the other hand, the Google Play and Apple Store offers have managed to clear up the high level of fraud and unclear customer experiences that were running wild in the industry in the early 2000s. The new stores should come with an enlightened view.

However, the transition is not without challenges. It will take a while to clear up and balance the valid request on each side. Both Apple and Google have been accused, by companies including Epic, to be creating barriers to the installation of alternative app stores, with reports of cumbersome and confusing processes that deter users from seeking out these options. Apple, for its part, claims that it has implemented the DMA's requirements while still prioritizing user privacy and security.

As the mobile ecosystem continues to evolve under the influence of the DMA, the implications for mobile payments are profound. We are likely to see an increase in the variety of payment methods available to consumers, a reduction in transaction fees, and greater innovation in the types of services offered through mobile apps. Potentially we are going to see an increase in fraud and mis-selling if companies do not adopt a stricter overseeing activity than we saw in the past.

The mobile gaming industry is projected to reach US$164.8 billion by 2029. Despite fewer game downloads, average revenue is rising as gamers spend more on engaging mobile games. Challenges like cheating in esports and latency in cloud gaming persist, but the industry promises continued growth and innovation, offering opportunities for developers, publishers, and investors.

The Mobile Ecosystem Forum is set to launch its Annual ‘State of the Industry: Mobile Gaming’ Yearbook at the Global Carrier Billing and Mobile Payments Summit on the 18th of September 2024. With a view on the future, it is apparent is that gamers are experimenting less, but investing more in the games they do commit to.

As a 90’s kid, I can relate to the sentiment. The concept of instant gratification and multiple screens didn’t exist of course, but we invested hours and hours of teenage lives in sticking a particular trick combination in Tony Hawk’s Pro Skater, defeating a final-boss in Duke Nukem 3D or cracking a puzzle in Abe’s Odyssey. Our investment was time, because throwing money at the problem wasn’t an option.

Today’s younger gamers can purchase add-ons or buy boosts that, if you think about it, simply makes the virtual time pass faster. The sentiment is the same: we exchange something of value to go somewhere we’ve never been before. In the mobile-first era of gaming, consumers can do this 24/7.

If you are interested in monetisation of the 15 billion hours spent on mobile viewing daily, you should be joining MEF’s Global Carrier Billing and Mobile Payments Summit in Amsterdam on September 17th and 18th, co-produced by Informa Tech. The debate will continue at MEF’s online monthly Interest Group call for the Mobile Content & Advertising Forum.  See: https://mobileecosystemforum.com/global-carrier-billing-and-mobile-payments-2024/   

Anzelle Robertson is Program Director, DCB, Content & Advertising at the Mobile Ecosystem Forum, a global trade body established in 2000 and headquartered in the UK with members across the world. As the voice of the mobile ecosystem, it focuses on cross-industry best practices, anti-fraud and monetisation. The Forum provides its members with global and cross-sector platforms for networking, collaboration and advancing industry solutions.