Today, when an iOS app developer sells services or subscriptions, Apple charges a 15% or 30% commission on payments made by users. But that could, sooner or later, change.
Indeed, following the lawsuit between Apple and Epic, a judge ordered Apple to no longer block third-party payment systems, which would allow apps to accept payments without going through the App Store and its commissions. While this decision was to be applied in December, Apple appealed, and ultimately, American justice temporarilyallowedthe firm not to change anything, pending a new decision.
In Europe, App Store commissions are also threatened by proposed legislation, theDigital Markets Act. In addition, in the Netherlands, the competition authority asked the Cupertino company to authorize dating app developers to use third-party payment systems.
Apple's proposals have so far not satisfied the Dutch competition authority. And as a result, the firm has already received five fines of 5 million euros (one fine per week) for non-compliance.
Developers are ready
Meanwhile, the company Paddle, specializing in online transactions, is already preparing to provide a service to developers who wish not to use Apple's payment system, on which the App Store charges 15% commissions. or 30%.
According to an article from Business Insider, when the conflict between Apple and Epic began, Paddle CEO Christian Owens felt it was time to develop a competitor to the payment system integrated into the App Store. Then, this offer was announced in 2021, after the verdict was announced by a federal judge.
Unfortunately for Paddle, Apple finally obtained the suspension of the decision which required the firm to authorize third-party payment systems. But in the meantime, this company has already gauged the interest of developers.
And apparently, many are in a hurry to put an end to App Store commissions. In fact, currently, 1,500 developers have already registered. The transaction volume of these developers on the App Store would exceed a billion dollars.
Paddle does not offer its service for free. But it offers significantly more advantageous rates. As Business Insider explains, this future Apple competitor plans to charge a 10% commission for purchases of less than 10 dollars. And for purchases above that threshold, the commission would be 5%, plus 50 cents.
In addition to this financial advantage, Paddle wants to offer features that developers do not have on the App Store. And among the features that would interest developers the most would be support for cross-platform payments.
“Many of our Mac customers are also iPhone customers, but they must have a completely different experience purchasing products in these two different locations”, said Owens, quoted by Business Insider.
Regarding the fact that Apple appealed, the CEO of Paddle commented:“Apple is trying to some extent to make this process last as long as possible, because obviously the biggest company in the world can probably afford it. »
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By : Keleops AG
