A Platform Built for Indie Developers

However, sustaining user engagement, ensuring developer profitability, and competing with giants like WeChat and WhatsApp will require continued innovation and strategic partnerships.”

Telegram’s mini apps are lightweight, web-based applications that run directly within chats. Unlike traditional mobile games that require downloads and app store approvals, Telegram games can be launched instantly via a link or bot. This frictionless experience has proven effective in driving viral adoption. Games like Notcoin and Hamster Kombat reached tens of millions of users within weeks, with the latter reportedly surpassing 239 million users by mid-2024.

For developers, Telegram offers a compelling value proposition. The platform charges no commission on in-app purchases. Instead, users buy Telegram’s in-app currency, Stars, through Apple or Google’s payment systems. While app stores still take their standard 30% cut, Telegram allows developers to keep the remaining 70%. Developers can also reinvest Stars into Telegram’s ad platform, effectively recouping the app store fee through ad credits.

This model stands in contrast to traditional app stores and platforms like Facebook Messenger, which typically take a 30% commission. Discord, by comparison, offers a more developer-friendly 10% cut on in-app purchases within its Activities feature.

Monetization: Promise vs. Reality

Despite the zero-commission headline, Telegram’s monetization model has its complexities. The exchange rate for Stars can vary, and developers often receive less than the full value of user purchases after accounting for app store fees and conversion rates. For example, a $2.40 purchase might yield only $1.30 in developer revenue.

Moreover, many of Telegram’s early gaming successes have been tied to crypto-based incentives. Games like Notcoin and Hamster Kombat attracted users with the promise of token rewards, leading to rapid growth but also raising concerns about sustainability. Once the financial incentives faded, user engagement often dropped sharply.

Telegram is now encouraging more sustainable monetization strategies. Developers can offer subscriptions, premium features, and even integrate advertising through third-party networks. The platform also introduced an affiliate program, allowing influencers and channel owners to earn a share of revenue by referring paying users.

Business Models and Scalability

Across platforms, monetization strategies vary:

• In-App Purchases remain the most common model. WeChat’s seamless integration with its payment system makes it particularly effective. Telegram’s Stars system is promising but still maturing.
• Subscriptions offer recurring revenue. Discord’s Nitro and Telegram’s support for premium features show potential, though adoption remains limited.
• Advertising is lucrative at scale. WeChat’s ad network generates significant revenue, while Telegram’s lack of a native in-game ad platform may limit its appeal to developers.
• Direct Carrier Billing has proven effective in markets with low credit card penetration. KakaoTalk and Facebook Messenger leveraged this to boost in-game spending. Telegram has yet to integrate this option.
• Crypto Payments are a double-edged sword. While they attract users and offer innovative monetization paths, they also introduce volatility and regulatory challenges.