Announcing 'a new payment system that competes with Apple' that allows in-app purchases while avoiding high fees on the App Store


by YunHo LEE

As major IT companies investigate antitrust violations worldwide, there is a growing demand for the availability of external payment systems for in-app purchases on the App Store. Meanwhile, Paddle , a payment platform for software companies, was one of the first to announce a 'third-party payment system for iOS app developers,' which is a competitor to Apple's payment system.



Paddle In-App Purchase for iOS
https://paddle.com/platform/in-app-purchase/

Paddle announces first competitor to Apple In-App Purchases following Epic v Apple suit
https://www.prnewswire.com/news-releases/paddle-announces-first-competitor-to-apple-in-app-purchases-following-epic-v-apple-suit-301394461.html

Paddle Plans to Launch Alternative In-App Purchase System on iOS That Circumvents Apple's Fees --MacRumors
https://www.macrumors.com/2021/10/07/paddle-plans-alternative-in-app-purchase-system/

The App Store operated by Apple is stipulated to use the payment system provided by Apple for in-app purchases. However, it has been complained that developers pay Apple a high fee of 30%, and it has been pointed out that this practice may violate antitrust laws in recent years.

Epic Games, the developer of the popular battle royale game Fortnite, introduced a system that allows direct purchase of in-game currency to avoid App Store fees. The iOS version of the app has been deleted from the App Store as 'No'. In response, Epic Games sued Apple and in September 2021, 'Apple should allow options to use third-party payment systems and allow app developers to direct users to non-Apple payment systems. I ordered.

In a lawsuit between Apple and Epic Games, 'App Store should accept payment methods other than Apple', while there are voices saying that Apple will win --GIGAZINE



Following the Apple vs. Epic Games ruling, Paddle has announced that it will launch Paddle In-App Purchase , an alternative in-app payment system for iOS app developers, ahead of other companies. Paddle In-App Purchase has already started accepting registrations from interested developers, and will be released on December 7, 2021.

The Paddle In-App Purchase fee is 10% for transactions under $ 10 (about 1100 yen), 5% + 0.5 dollars (about 55 yen) for transactions over $ 10, and a fee of 15 to 30%. Is significantly cheaper than Apple's payment system. It also features PayPal support, developer-manageable refunds, subscription suspension, country and region pricing, and pay-as-you-go pricing.

'The Apple vs. Epic Games verdict makes it clear how app developers can choose an alternative to Apple's payment system (which requires a 15-30% fee),' Paddle said on the official website. Claim. By using Paddle In-App Purchase, it is possible to provide customers with a flexible payment system at a lower fee than the App Store, and even if the application payment system is switched to Paddle In-App Purchase, it will continue to be sold on the App Store. It says that it will be done.

On the other hand, some say that Paddle's new payment system is based on wishful thinking that 'Apple will fully accept the court order and take the action that app developers want.' Apple-related media iMore points out that Paddle's new in-app billing system may not be available for apps in the App Store.

In-app purchase alternative from Paddle will see apps rejected, says expert | iMore
https://www.imore.com/app-purchase-alternative-paddle-will-see-apps-rejected-says-expert



Legal expert Florian Mueller said the injunctions issued in the Epic Games and Apple trials do not require support for the payment system built into the app itself. 'Developers will probably see apps rejected when they embed Paddle's API,' Mueller said, and Apple will deliver apps that implement Paddle In-App Purchase on the App Store. Insisted that he would not admit.

Paddle, on the other hand, said, 'In our understanding and legal advisors, Paddle In-App Purchase is acceptable within the legal judgment of Apple vs. Epic Games. It has a significant impact on iOS developers and the broader market. We welcome Apple to share its own interpretation to clarify this issue. '

In addition, in the trial of Apple vs. Epic Games, it was not judged that 'Apple violates the antitrust law', but on October 7, 2021, the antitrust authorities of the Netherlands said 'App to developers. Apple's regulations requiring the use of an in-house payment system are anti-competitive, 'and reportedly called for changes to the rules. Companies like Paddle that are launching “services that compete with App Store payments” are expected to continue to benefit.

EXCLUSIVE Dutch watchdog finds Apple app store payment rules anti-competitive --sources | Reuters
https://www.reuters.com/technology/exclusive-dutch-watchdog-finds-apple-app-store-payment-rules-anti-competitive-2021-10-07/



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