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Developers building ways to avoid reducing Apple’s in-app purchases

Tim Cook at WWDC21 on June 7, 2021.

Source: Apple

Developers are building new software for apps that allows businesses to charge their customers without paying Apple. This accounts for up to 30% of app sales.

They are preparing for new changes that Apple will have to implement later Federal judge by Apple in September We need to allow app developers to link to alternative payment systems. The ruling came as a result of a court battle between Apple and Fortnite maker Epic Games.

If new software 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, with 2020 sales of $ 56.8 billion and gross profit of 66%, accounting for about 20% of Apple’s revenue.

Developers are preparing several options because it’s not clear what they have to do to comply with Apple’s new rules. Apple has not shared details of its plans to comply with the judge’s order, which will come into effect on December 7.

Paddle CEO Christian Owens said the ruling would provide an opportunity to expand his company’s Mac and Windows customer billing business to Apple’s iPhone App Store. Paddle has built three different implementations of iPhone payment products in the hope of complying with the rules.

“We look forward to hearing from Apple and would like to keep a record of the exact description of what is allowed and what is not,” Owens said.

With one version of Paddle’s Software Development Kit (SDK), app makers[今すぐアップグレード]You can use the button to offer a monthly or annual subscription. This button links to a paddle-hosted web page in the Safari browser and offers several payment options such as Apple Pay and Apple Pay. PayPal.. After the payment is processed, the user will return to the app.

Paddle provides developers with the ability to link to the payment screen from the app.

paddle

RevenueCat, a company that builds tools for iOS developers to manage customer subscriptions, is also developing a browser-based payment system that developers can add to their apps without having to build their own, the CEO said. Jacob Eiting said.

“The real magic is to get a portable link that developers can include in external marketing, or now in their apps, and use the SDK to instantly unlock access,” Eiting said in an email. Stated.

“Developers will still need to use Apple’s IAP within their apps, but we expect them to be able to browse and link to external paywalls,” Eiting said.

RevenueCat will offer a product that allows app developers to sign up for new subscribers via in-app links.

Revenue Cat

It’s also what the CEO of Paddle thinks will happen.

“If you want to provide an off-platform in-app purchase mechanism, you’ll have to provide Apple’s in-app purchase mechanism in addition to that,” Owens said.

Apple has not updated the App Store Guidelines, A document that decides what developers can and cannot do with iPhone apps since last month’s ruling.All iPhone apps and updates go through the process Called app review, If an Apple employee rejects an app that does not comply with Apple rules.

According to the judge’s decision, Apple must allow customers to leave the ecosystem to purchase virtual products on the web. However, it does not prevent Apple from making other policy changes to the store, such as developing new ways to charge iPhone app transactions that occur off-platform. Apple CEO Tim Cook may have testified during the trial.

“If not [in-app purchasing], We need to come up with another system for billing developers, which would be confusing, “Cook said in May.

Apple He declined to comment, but during the trial, the App Store claimed to ensure user privacy and security. Apple’s legal counsel, Kate Adams, said in September that Epic Games’ decision was a “big win” and welcomed the court’s finding that Apple wasn’t exclusive.

What it means for Apple and consumers

Apple announced the new iPhone 11 Pro at the launch event on September 10.

Source: Apple

Some Wall Street analysts believe that the impact on Apple is limited but realistic. Potentially reduce Apple’s revenue Off-platform billing is often used for expensive software subscriptions, increasing up to 4%.

Eiting said Apple’s changes may not have a significant financial impact on developers. He argued that even if the app could be linked, users would be less likely to complete the purchase if they needed to visit an external web page. It can also annoy users who need to manage their subscriptions individually rather than in the iPhone settings.

“I think it’s good to compete with the system, but I’m not sure it’s going to be a disaster for everyone,” Eighting said.

Alternative payment systems charge developers less than Apple, while providing conveniences such as managing subscription cancellations and providing insights into sales trends.

According to Owens, Paddle will reduce total purchases by 5% to 10%, less than Apple’s 15% to 30%, and handle behind-the-scenes headaches such as international taxes and customer support. The savings can be returned to consumers.

Developers will find an incentive for lower prices if Apple requires apps with direct billing links to also offer in-app purchases. For example, a music service could charge $ 9.99 per month if a user subscribes from within the app. This is because Apple cuts those purchases, but if you click the link and subscribe directly to the service’s website, it costs $ 6.99 per month.

“What we are trying to overcome to build a competitive solution for in-app purchases is the fact that even the smallest transactions can be done at 10% of the value of those transactions and the price can be reduced. From there. “

Tim Sweeney, CEO of Epic Games, has made these changes in the proceedings. Congrats Paddle Thursday’s Tweet.



Developers building ways to avoid reducing Apple’s in-app purchases

Source link Developers building ways to avoid reducing Apple’s in-app purchases

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