Apple gives in to South Korea, enables third-party payments for app developers

Posted:
in iOS edited June 30
Apps that are distributed "solely in South Korea" can now include their own in-app payment system, but Apple will block certain App Store features if they do -- and will still take a 26% cut.

App Store


Following South Korea's introduction of new laws regarding app stores, Apple has now formally allowed developers to adopt their own in-app payment systems. Instead of all payments going via Apple and its own App Store, developers can choose alternatives -- but with conditions.

In a new support document for developers, Apple says qualifying developers can use what it calls its StoreKit External Purchase Entitlement feature.

"This entitlement allows apps distributed on the App Store solely in South Korea the ability to provide an alternative in-app payment processing option," says Apple. "If you're considering using this entitlement, it's important to understand that some App Store features, such as Ask to Buy and Family Sharing, will not be available to your users, in part because we cannot validate payments that take place outside of the App Store's private and secure payment system."

"Apple will not be able to assist users with refunds, purchase history, subscription management, and other issues encountered when purchasing digital goods and services through an alternative purchasing method," it continues. "You will be responsible for addressing such issues."

The benefit to qualifying developers is that instead of paying Apple 30% of every transaction, they have to pay all of the payment processing costs themselves. Acknowledging that, Apple reduces its fee -- but it does not remove it.

"Apple will charge a 26% commission on the price paid by the user, gross of any value-added taxes," says the further detailed developer documentation. "This is a reduced rate that excludes value related to payment processing and related activities."

Developers have to report all sales monthly. "Please note that Apple has audit rights pursuant to the entitlement's terms and conditions," says Apple's documentation.

"Failure to pay Apple's commission could result in the offset of proceeds owed to you in other markets," it continues, "removal of your app from the App Store or removal from the Apple Developer program."

The move follows Apple's previous responses to the South Korean law, which authorities there described as insufficient.

Read on AppleInsider
danox

Comments

  • Reply 1 of 11
    harrykatsarosharrykatsaros Posts: 52unconfirmed, member
    A lot of fuss over nothing. Nobody is going to use this and a lot of developers will quickly abandon it when they find out it’s costing them more than it’s earning.  
    AMcKinlay21jony0watto_cobra
  • Reply 2 of 11
    aderutteraderutter Posts: 534member
    Yeah, will be good when the issue is out of the way. 
    watto_cobra
  • Reply 3 of 11
    mcdavemcdave Posts: 1,917member
    They should have ensured App Store/Apple Pay payments were one of the payment options. That way they could reign in untrustworthy credit card capture systems. After all, it’s all about consumer choice right?
    watto_cobra
  • Reply 4 of 11
    rob53rob53 Posts: 2,983member
    mcdave said:
    They should have ensured App Store/Apple Pay payments were one of the payment options. That way they could reign in untrustworthy credit card capture systems. After all, it’s all about consumer choice right?
    This has nothing to do with customer choice, it has everything to do with developer choice and greed.
    edited June 30 Beatsjony0danoxlolliverwatto_cobra
  • Reply 5 of 11
    JaiOh81JaiOh81 Posts: 41member
    I wonder if apple will have an alert show for users warning them about things like family sharing, subscription management and refunds not being available through apple before they make any purchases outside of the App Store 
    jony0watto_cobra
  • Reply 6 of 11
    BeatsBeats Posts: 3,073member
    What a mess. Hope this doesn’t happen outside of SK.

    This might be reason enough to buy an iPhoney. Anyone know if Samsung iPhoneys also abide by this nonsense?

    JaiOh81 said:
    I wonder if apple will have an alert show for users warning them about things like family sharing, subscription management and refunds not being available through apple before they make any purchases outside of the App Store 

    Besides it being annoying and complicating the system, people will STILL contact Apple and demand a refund and customer service. Apple deserves the 26% on that alone. When someone gets scammed they’re gonna run to Apple for help whether they believe it’s Apple’s fault or not. I wonder if Apple could sue these companies if a scam goes through and affects Apple and their customers.
    jony0watto_cobra
  • Reply 7 of 11
    mac_dogmac_dog Posts: 980member
    Sounds fair to me. All those entitled crybabies are going to be very quiet. 
    jony0watto_cobra
  • Reply 8 of 11
    mac_dogmac_dog Posts: 980member
    A lot of fuss over nothing. Nobody is going to use this and a lot of developers will quickly abandon it when they find out it’s costing them more than it’s earning.  
    Exactly. It’s going to be a real headache for a lot of developers.
    jony0watto_cobra
  • Reply 9 of 11
    danoxdanox Posts: 1,042member
    mcdave said:
    They should have ensured App Store/Apple Pay payments were one of the payment options. That way they could reign in untrustworthy credit card capture systems. After all, it’s all about consumer choice right?
    It’s about there is no free ride, and this is the true cost good luck…..
    watto_cobra
  • Reply 10 of 11
    danoxdanox Posts: 1,042member
    Beats said:
    What a mess. Hope this doesn’t happen outside of SK.

    This might be reason enough to buy an iPhoney. Anyone know if Samsung iPhoneys also abide by this nonsense?

    JaiOh81 said:
    I wonder if apple will have an alert show for users warning them about things like family sharing, subscription management and refunds not being available through apple before they make any purchases outside of the App Store 

    Besides it being annoying and complicating the system, people will STILL contact Apple and demand a refund and customer service. Apple deserves the 26% on that alone. When someone gets scammed they’re gonna run to Apple for help whether they believe it’s Apple’s fault or not. I wonder if Apple could sue these companies if a scam goes through and affects Apple and their customers.

    No but now the bad company will have the plug pulled out from underneath them, Many companies will now be cut out of the store with a digital paper trail.
    watto_cobra
  • Reply 11 of 11
    danoxdanox Posts: 1,042member
    mac_dog said:
    A lot of fuss over nothing. Nobody is going to use this and a lot of developers will quickly abandon it when they find out it’s costing them more than it’s earning.  
    Exactly. It’s going to be a real headache for a lot of developers.
    Only the greedy ones…
    watto_cobra
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