Short-form video platform TikTok has emerged as a financial powerhouse, with users collectively shelling out a staggering $10 billion on the platform. This achievement positions TikTok as the first non-gaming mobile application to reach such a remarkable spending milestone, standing toe-to-toe with industry giants in the mobile gaming realm.

Data.ai’s recent report reveals that TikTok, boasting over 1 billion monthly active users in 2021, achieved this feat on both the Apple App Store and Google Play. Remarkably, only gaming juggernauts Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans have previously breached the $10 billion spending threshold.

The report highlights TikTok’s extraordinary financial trajectory, kicking off 2023 with $6.2 billion in user spending, and subsequently adding an additional $3.8 billion. This constitutes a remarkable 61% year-over-year increase, surpassing the 2022 figure by 15%. It’s crucial to note that the report solely considers consumer spending on TikTok through iOS and Google Play, excluding third-party Android app stores in China.

TikTok’s financial success is attributed to its unique virtual currency, “coins,” enabling users to purchase gifts for content creators. These gifts, acting as rewards for engaging content, can be converted into cash. TikTok, however, imposes a significant 50% commission on these payouts. Notably, the most popular in-app purchase is a set of 1,321 coins priced at $19.99, constituting a quarter of total user spending.

The majority of TikTok’s spending hails from US consumers and iOS users in China, contributing roughly 30% each to the platform’s revenue. Following closely are key global markets, including Saudi Arabia, Germany, the UK, and Japan, collectively accounting for 13% of TikTok’s in-app shopping revenue.

While other non-gaming apps such as Tinder and YouTube boast considerable user spending, TikTok stands unrivaled in its ascent to financial supremacy. Data.ai forecasts a continued upward trajectory for TikTok, predicting user spending to soar to an impressive $15 billion in 2024. As TikTok reshapes the landscape of consumer spending, its unparalleled success challenges traditional perceptions of mobile application revenue.