Tech

Apple’s in-app payment system faces a challenge


The mysterious end of Epic Games’ trial against Apple has opened a small crack in the iPhone maker’s control over in-app payments, and a small developer is now trying to slip through it.

Andannounced A company called Paddle reports its own in-app payment system that takes a smaller commission than Apple’s – from 5 to 10 percent. This is instead of the 15-30 percent commission demanded by the iPhone manufacturer.

This is a way to beat the commission that started the battle with Epic Games in the first place and is likely to be the start of a new battle for developers.

The Paddle system is designed to take advantage of a court ruling, which requires Apple to allow external payment links. Prior to the ruling, the App Store rule banned external links or other calls to action that direct customers to purchase mechanisms. But the judge found that the rule violated anti-directive laws.

The Paddle system provides an external link that pushes users to an external page where they can pay before returning to the app. The method includes extra steps, but it’s far from workaround that you have to follow if you want to get around Apple’s in-app purchase system.

One of Paddle’s biggest selling points is the fees. Apple is famous for its 30 percent commission on in-app purchases for most developers. Paddle offers 10 percent commission on payments under $10 and 5 percent plus $0.50 on payments over $10.

Read also: Apple wants to control more parts of your car in the future

Epic Games trial inspired developers to skip Apple’s commission

The real test is to see how apps that include Paddle payments go through during an app review. And if Apple wants to find violations of its rules in apps that use Paddle, it’s very likely to do so.

The company said it was trying to figure out how it could change its rules to comply with the judge’s order. But the new rules have not yet been announced.

“We have been waiting to see how the details of the ruling are implemented,” Paddle said. We built a few versions of the system to make it easier to adapt to any Apple rules. We plan to launch the in-app payment service on December 7.

As mentioned in the request, Paddle says that, unlike Apple, it allows developers to see customers’ email addresses to help support billing.

Paddle also lists other benefits of its system, such as the ability for developers to price their app the way they want without worrying about whether Apple agrees, the ability to set prices on a country-by-country basis, and the ability to offer coupons.

And since this is the company’s first major challenge to the company’s in-app purchase system since the ruling, it’s likely to attract a lot of attention.

And if the new system is widely adopted by developers and users, it could threaten Apple’s profit engine. The App Store is part of the company’s services business. which recorded $53.8 billion in sales during fiscal year 2020, with a gross margin of 66 percent. Which represents about 20 percent of its revenue.

Read also: iOS 15.1 from Apple includes iPhone 13 Pro camera features

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