The first test in the Epic Games vs. Apple concluded a few days ago, with the verdict in favor of Apple. Fortnite it’s not back on the iPhone, iPad, or Mac, and Epic has to pay Apple millions of dollars. But Epic scored a small win that could create ripples in the industry. The judge said Apple should allow apps like Fortnite to display an alternative to the App Store’s default in-app purchase (IAP) system. The language made it appear that Apple does not have to allow third-party payment systems in iPhone applications. Rather, you will have to allow developers to link to a different payment option. And some developers, like Paddle, are already looking to compete against Apple’s in-app payment system with a solution of their own.
The Paddle vs. Apple In-App Purchase System
Epic and other developers challenged Apple’s 30% commission with their various antitrust charges against the iPhone maker. Epic forced the entire legal mess with Apple by sneaking its own payment system into Fortnite on iPhone. The action set in motion a series of predictable events that culminated in the trial and verdict.
Now that the judge said Apple should allow links to other payment options within the apps, developers like Paddle will want to seize the potentially lucrative opportunity. Apple hasn’t even explained how it would implement the new requirement. But the oar already has a page on your website comparing its in-app purchase system with Apple’s default one.
Paddle advertises lower fees starting at 10% for transactions under $ 10. Above that amount, the fee changes to 5% and an additional $ 0.50 per transaction. Paddle points out other benefits for developers that Apple doesn’t offer, such as accessing customer email for assistance. Also, PayPal payments are part of the Paddle system, while Apple does not support PayPal.
The Paddle page allows interested developers to sign up for the feature, though what happens next is unclear. Apple has yet to reveal how it will implement the court’s decision.
“We would love to hear from Apple and get an official description of exactly what will and will not be allowed,” said Paddle CEO Christian Owens Owens. saying CNBC.
How could it work
“I think it’s going to be a situation where if you want to offer an off-the-shelf, in-app purchase mechanism, you also have to offer Apple’s in-app purchase mechanism,” Owens said.
Paddle built three different implementations for their software, based on CNBC. One of them allows developers to offer monthly or yearly subscriptions with an “Update Now” button that takes the user to Safari. Next, a web page hosted on a palette will load with various payment options, including Apple Pay and PayPal. After the transaction completes, the user can return to the application.
Paddle isn’t the only company looking to take advantage of the new in-app store payments opportunity. CNBC so mention Cat revenue, a developer creating similar payment processing tools for iPhone applications. RevenueCat is developing a browser-based payment system that developers can add to their applications. An in-app link is all that is needed for customers to choose an alternative to the default.
“We are operating under the assumption that developers will still need to use Apple’s IAP within their applications, but will now be allowed to reference and link to external paywalls,” said CEO Jacob Eiting. CNBC.
Users won’t necessarily love the alternatives
However, the RevenueCat executive also indicated that he does not expect third party payments to have a big impact. That’s because the systems will be more cumbersome, forcing users to exit the app to complete purchases. Another problem has to do with managing subscriptions. With Apple’s system, shoppers can do everything in one place. But users will have to manage subscriptions individually if they pay through third-party options like Paddle, RevenueCat, and others.
It is not known when Apple will implement updated Apple Store rules that will allow developers to link to third-party payment options. But an update must be in progress.
Separately, Apple settled an antitrust case in Japan where it agreed to allow links to “reader” application websites such as Netflix and Spotify. This would allow customers to manage subscriptions on developer sites rather than purchasing them through Apple. The deal offers a solution that Apple could apply to all other apps as well, following Epic’s ruling.