or Connect
AppleInsider › Forums › General › General Discussion › PayPal launches new iOS SDK to allow in-app payment for third-party apps
New Posts  All Forums:Forum Nav:

PayPal launches new iOS SDK to allow in-app payment for third-party apps

post #1 of 12
Thread Starter 
PayPal said on Friday that it is rolling out a new mobile software development kit that will let Apple iOS device users make in-app purchases via the company's payment service without having to switch apps.

PayPal


Announced to through a blog post from the SXSW Festival, PayPal's new SDK also expands customer payment options to include the company's card.io technology, which allows users to take a picture of their credit card instead of manually inputting the information.

As noted by The Next Web, with the new software, developers can create apps that offer an enhanced user experience. Currently, when a purchaser pays through PayPal in a third-party app, they are taken to either Safari or PayPal's own iOS app to complete the transfer.

?Developers should have the freedom to focus on innovating for their customers, not spending time worrying about handling the complex task of payments,? PayPal CTO James Barrese said in the post. ?But we listened when our developers said they wanted better capabilities from us, and now we?re doubling down on our developer programs to deliver the best tools in the industry.?

In addition to the in-app integration, the e-payment giant introduced new JavaScript PayPal buttons that can be implemented with just five lines of code.

Finally, PayPal is beta-launching REST, OAuth and JSON versions of its most popular APIs, payment processing and immediate settlement, to help streamline integration for developers.

In the post, Barrese noted that the SDK will first be rolled out to iOS devs, with support for other platforms coming down the road.
post #2 of 12
It will be interesting to see how long it takes for them to realize that this violates the App Store TOS.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #3 of 12
Quote:
Originally Posted by jragosta View Post

It will be interesting to see how long it takes for them to realize that this violates the App Store TOS.

 

This is incorrect.

 

Apple's In-App Purchasing only applies for virtual goods extending an application, its content, etc. In fact, developers are not allowed to use Apple's In-App Purchasing if sale of any real/physical goods is involved.

 

Therefore PayPal's move does make perfect sense.


Edited by cynic - 3/8/13 at 3:38pm
post #4 of 12

Quote:
Originally Posted by cynic View Post

Quote:
Originally Posted by jragosta View Post

It will be interesting to see how long it takes for them to realize that this violates the App Store TOS.

 

This is incorrect.

 

Apple's In-App Purchasing only applies for virtual goods extending an application, its content, etc. In fact, developers are not allowed to use Apple's In-App Purchasing if sale of any real/physical goods is involved.

 

Therefore PayPal's move does make perfect sense.

So how does PayPal implement this SDK? I am not aware of any app to app behind the scenes communication except through Apple kits such as MapKit. Do you think the PayPal check out service will be offered as third party compiled code that uses a remote service like SOAP or AJAX type interface so as to be transparent to the user? It is a little confusing because there appears to be a typo in the first paragraph.

 

"...via the company's payment service having to switch apps." ???

 

And what happens to developers who do try to sell virtual goods through the service?

 

Here is a document about in app purchases:

https://developer.apple.com/in-app-purchase/In-App-Purchase-Guidelines.pdf

Life is too short to drink bad coffee.

Reply

Life is too short to drink bad coffee.

Reply
post #5 of 12
Quote:
Originally Posted by mstone View Post

So how does PayPal implement this SDK? I am not aware of any app to app behind the scenes communication except through Apple kits such as MapKit. Do you think the PayPal check out service will be offered as third party compiled code that uses a remote service like SOAP or AJAX type interface so as to be transparent to the user? It is a little confusing because there appears to be a typo in the first paragraph.

 

"...via the company's payment service having to switch apps." ???

 

And what happens to developers who do try to sell virtual goods through the service?

 

Here is a document about in app purchases:

https://developer.apple.com/in-app-purchase/In-App-Purchase-Guidelines.pdf

 

You're right, there seems to have been a typo. Naturally this should have read "... without having to switch apps".

What does this mean? It means that people don't have to switch to Safari anymore to process a payment through a website.

 

Essentially this is a combination of multiple technologies. You got new REST APIs on one side and you got a mobile SDK in form of a static library on the other, which you can include into your app project.

 

Regarding selling virtual goods through the PayPal service it will simply lead to a rejection of the app on submission. We've seen this before, even companies such as Amazon had to remove links for signing up, because it essentially leads to people bypassing Apple's IAP for virtual items such as music tracks or books.

 

Edit: As for why they need this SDK in addition to REST APIs has multiple reasons. For one it naturally makes a developers life easier, because depending on the implementation it might save a lot of work, will probably handle the transaction UI for you and spares you handling accessing the REST service directly, encryption, etc.

More importantly however, the control of a user's account and associated details remains hidden from the developer. This is handled by the SDK. Were you to access the REST service directly, you would need to have at least basic information about the user account, such as gathering username and password for transmission to PayPal. However, in such a scenario, no one knows what else you might do with that data you just gathered, whereas it remains in PayPals control what happens with such data through their SDK.


Edited by cynic - 3/8/13 at 5:07pm
post #6 of 12
Quote:
Originally Posted by cynic View Post

This is incorrect.

Apple's In-App Purchasing only applies for virtual goods extending an application, its content, etc. In fact, developers are not allowed to use Apple's In-App Purchasing if sale of any real/physical goods is involved.

Therefore PayPal's move does make perfect sense.

Where did the article say anything about physical goods? It simply said that you could use this software for in app purchases:
"PayPal said on Friday that it is rolling out a new mobile software development kit that will let Apple iOS device users make in-app purchases via the company's payment service without having to switch apps."

In the past, ALL in-app purchases had to go through Apple. There's nothing in this article that explains why this is any different.
http://www.hispanicbusiness.com/2011/2/3/apple_changes_app_store_purchase_rules.htm
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #7 of 12
Quote:
Originally Posted by jragosta View Post


Where did the article say anything about physical goods? It simply said that you could use this software for in app purchases:
"PayPal said on Friday that it is rolling out a new mobile software development kit that will let Apple iOS device users make in-app purchases via the company's payment service without having to switch apps."

In the past, ALL in-app purchases had to go through Apple. There's nothing in this article that explains why this is any different.
http://www.hispanicbusiness.com/2011/2/3/apple_changes_app_store_purchase_rules.htm

 

Well, again, this is simply not correct. Apple's In-App Purchases only apply for virtual goods. If you want to sell groceries through an app, you're free to use your own payment processing or PayPal's. When using a different In-App Purchasing service than Apple's it also does not get its 30% cut, however, again it only applies to non-virtual goods.

 

It doesn't matter whether the article specified it or not, but your initial posting, which prompted my answer did not specify anything either, which made it appear as if no other payment processing, disregarding of what it might be used for is allowed at all. And that's simply not true. As stated above, in fact Apple does prohibit you to use the Apple In-App Purchasing service for goods that are not virtual.

 

From Apple's Guidelines:

 

 

Quote:
11.3 - Apps using IAP to purchase physical goods or goods and services used outside of the application will be rejected.

 

For further reference check out the App Store, you'll find various apps selling physical goods using In-App Purchasing through a third party provider.

 

Regarding that link you posted, the article is simply wrong. At one point it also states that booking of services has to be done through Apple's IAP. That's not true either and in fact contradicts 11.3 from the guidelines above.

 

Is it possible we have a misunderstanding about the definition of In-App Purchase here? ;-)


Edited by cynic - 3/8/13 at 6:15pm
post #8 of 12
The buzzword 'doubling down' is getting annoying. People use it to mean different things. In this case it implies 'putting in twice the amount of work.' But in other cases it can mean 'take double the risk' and various other plays on the idea of 'doubling.'

I know this isn't really relevant but I'm sick of seeing corporate drones use this phrase without even realising its origin or that it is so overused and is difficult to define anymore.
post #9 of 12
Quote:
Originally Posted by cynic View Post

Well, again, this is simply not correct. Apple's In-App Purchases only apply for virtual goods. If you want to sell groceries through an app, you're free to use your own payment processing or PayPal's. When using a different In-App Purchasing service than Apple's it also does not get its 30% cut, however, again it only applies to non-virtual goods.

It doesn't matter whether the article specified it or not, but your initial posting, which prompted my answer did not specify anything either, which made it appear as if no other payment processing, disregarding of what it might be used for is allowed at all. And that's simply not true. As stated above, in fact Apple does prohibit you to use the Apple In-App Purchasing service for goods that are not virtual.

From Apple's Guidelines:



For further reference check out the App Store, you'll find various apps selling physical goods using In-App Purchasing through a third party provider.

Regarding that link you posted, the article is simply wrong. At one point it also states that booking of services has to be done through Apple's IAP. That's not true either and in fact contradicts 11.3 from the guidelines above.

Is it possible we have a misunderstanding about the definition of In-App Purchase here? ;-)

Once again, you're assuming that it's physical goods. Read the Paypal site:
https://www.thepaypalblog.com/2013/03/sxsw-2013-paypal-developer-tools/

Tell me where it mentions physical goods.

More importantly, they constantly talk about 'developers', not 'retailers' or 'merchandisers'. That suggests pretty strongly that they're talking about software products.

Furthermore, if you go to Paypal's developer site which is linked from the above blog (https://developer.paypal.com), it specifically mentions subscriptions. Subscriptions would clearly be a ToS violation.

But, if it makes you happy, I'll amend my statement to say that IF it's software or media, it's a violation of Apple's App Store rules and Paypal is about to get a big surprise.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #10 of 12
Quote:
Originally Posted by jragosta View Post


Once again, you're assuming that it's physical goods. Read the Paypal site:
https://www.thepaypalblog.com/2013/03/sxsw-2013-paypal-developer-tools/

Tell me where it mentions physical goods.

More importantly, they constantly talk about 'developers', not 'retailers' or 'merchandisers'. That suggests pretty strongly that they're talking about software products.

Furthermore, if you go to Paypal's developer site which is linked from the above blog (https://developer.paypal.com), it specifically mentions subscriptions. Subscriptions would clearly be a ToS violation.

But, if it makes you happy, I'll amend my statement to say that IF it's software or media, it's a violation of Apple's App Store rules and Paypal is about to get a big surprise.

 

I agree, PayPal doesn't mention physical goods but they also don't need to. Using this API for anything virtual would lead to an App Store rejection, using it for physical things or for services would not. All I was trying to say is that there are legitimate ways and benefits of using this within the App Store. However, this is not direct competition to Apple's IAP.

 

As for talking about developers and not merchants, I believe this is natural. At the end of the day it is developers who have to integrate APIs such as these. As for subscriptions, there are physicals subscriptions as well. You might sign up for a physical newspaper or magazine subscription, you might sign up for some physical video rental service or whatever. There are certainly scenarios for that.

 

If your point is that it might mislead certain people, you're certainly right. We might even see some rejections because of this. My intention was to point out that there are legitimate usage scenarios for this without violating the TOS.

post #11 of 12

I would say that paypal is scraping the edge of having there app booted.  I just got through reading the developers quick reference on what can and can not be sold and I get that physical goods can not be sold through any iOS app. 

 

 

 

 

Quote:

There are a handful of important guidelines to keep in mind as you design your application:

  • You must deliver your digital good or service within your app. Do not use In-App Purchase to sell real-world goods and services.

  • You must make your In-App Purchase items available to all of the devices registered to a user. 

Its pretty clear to me from this developer quick reference that apple forbids the sale of real world goods from within an app.   I highlighted in bold there where it says that.

The only way that I possibly think PayPal could get away with this is if there app handed the purchase request to paypals website directly but that is almost the same as linking to there website from within an app which apple shut amazon down for doing.  It will be interesting to see what apple does.

Quote:

Here are additional examples of content that would not be allowed with details about why they are not allowable:

Functionality

You may sell and unlock additional functionality within your application using In-App Purchase.

Adding additional functionality to an app should generally be considered Non-Consumable. Here are some examples of allowable additional functionality you might consider offering:

Example Content

Allowed

Why Is This Not Allowed?

Buy a physical book

X

Physical items cannot be purchased

Buy virtual poker chips for use in multiple apps

X

Items can only be used in the app where the purchase is made 

Notice purchasing a physical book is not allowed.

 

 

Quote:

Here are additional examples of services that would not be allowed with details about why they are not allowable:

Example Service

Allowed

Why Is This Not Allowed?

Plumbing repair service

X

Real-world services cannot be purchased

Courier delivery

X

Real-world services cannot be purchased

Web design services

X

Real-world services cannot be purchased 

Note that all of these real world services are not allowed.

 

 

 

Quote:

And some examples of subscriptions that would not be allowed:

Example Subscription

Allowed

Why Is This Not Allowed?

Auto-Renewing subscription to monthly voice- guidance service

X

Content is not episodic in nature (use Non- Renewing instead)

Gym membership renewal

X

Subscription to non-digital service

Free subscription to provide preview of magazine issues

X

Free subscriptions cannot be used to provide previews of full content 

Other real world services that are not allowed.

It looks like to me that the only thing apple allows is purchasing of items useable within that specific app only and not for any other purpose and they forbid the purchase of real world items through iOS apps.


Edited by Mechanic - 3/10/13 at 12:17pm
post #12 of 12
Quote:
Originally Posted by Mechanic View Post

I would say that paypal is scraping the edge of having there app booted.  I just got through reading the developers quick reference on what can and can not be sold and I get that physical goods can not be sold through any iOS app. 




Its pretty clear to me from this developer quick reference that apple forbids the sale of real world goods from within an app.   I highlighted in bold there where it says that.
The only way that I possibly think PayPal could get away with this is if there app handed the purchase request to paypals website directly but that is almost the same as linking to there website from within an app which apple shut amazon down for doing.  It will be interesting to see what apple does.
Notice purchasing a physical book is not allowed.


Note that all of these real world services are not allowed.



Other real world services that are not allowed.
It looks like to me that the only thing apple allows is purchasing of items useable within that specific app only and not for any other purpose and they forbid the purchase of real world items through iOS apps.
You're reading this wrong. Apple is talking about their IAP method, the one which goes through THEIR servers. Surely you've seen the eBay app? Of course you can sell anything through an app, you just can't use Apple's IAP method to do it (unless it's what they specifically allow).

The article mentions 'in-app purchases' which seems to be confusing. It's just referring to a purchase made in an app, not actually Apple's IAP method.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › PayPal launches new iOS SDK to allow in-app payment for third-party apps