App Store: developers in a hurry to no longer pay Apple commissions
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App Store: developers in a hurry to no longer pay Apple commissions

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The Paddle company is preparing to offer an alternative payment solution to developers, if the App Store allows it. 1,500 iOS application developers have already registered.

Today, when an iOS application 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 finally, the American justice temporarily authorized the firm to change nothing, pending a new decision.

In Europe, App Store commissions are also under threat from proposed legislation, the Digital Markets Act . In addition, in the Netherlands, the competition authority has asked the Cupertino company to allow 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 been fined five fines of 5 million euros (one fine per week) for non-compliance.

Developers stand by

Meanwhile, the Paddle company, which specializes 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 takes 15% commissions. or 30%.

According to a Business Insider article, when the dispute between Apple and Epic began, Paddle CEO Christian Owens felt it was time to develop a competitor to the App Store’s in-app payment system. Then, this offer was announced in 2021, after the announcement of the verdict by a federal judge.

Unfortunately for Paddle, Apple finally obtained the suspension of the decision which obliged the firm to authorize third-party payment systems. But in the meantime, this company has already gauged the interest of developers.

And apparently, a good number are in a hurry to be done with App Store commissions. Indeed, currently, 1,500 developers have already registered. The transaction volume of these developers on the App Store would exceed one billion dollars.

Paddle does not offer its service for free. But it offers much better rates. As Business Insider explains, this future competitor of Apple intends to charge a 10% commission for purchases of less than 10 dollars. And for purchases over 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 developers would be most interested in would be support for cross-platform payments.

“A lot of our Mac customers are also iPhone customers, but they must have a completely different experience shopping for products in those two different places ,” Owens said, as quoted by Business Insider.

Regarding Apple’s appeal, 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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