Apple and Google begin to concede on App Store payments, get ready to add carrier billing to the…Apple will now permit app developers to inform users about alternative payment methods outside of the App Store, where the company…
Apple and Google begin to concede on App Store payments, get ready to add carrier billing to the mix
Apple will now permit app developers to inform users about alternative payment methods outside of the App Store, where the company currently charges up to 30% commission on transactions.
Earlier this year, following long running disputes with the likes of Epic Games and Spotify, the EU piled on the pressure and criticized rules that prevent apps telling users of other payment methods to avoid paying the fee to Apple.
Apple’s concession came after a lawsuit brought by US developers ahead of a ruling in a separate case against the company by the makers of Fortnite. The change will allow smaller developers to manage a direct relationship with customers in order to manage their accounts and payment. According to Apple, the change is set to take effect early next year and will be applied globally.
Furthermore, South Korea’s parliament has passed a law that requires Apple and Google to offer third-party payment options in their app stores. The law prevents tech giants with dominant market positions, aimed specifically at Apple and Google, from restricting payment options in their software, either to pay for apps or for in-app purchases. A developer will be able to choose which payment method to use to charge users to buy apps and games, in-app purchases, as well as paying for other online subscriptions. As such, will be able to reduce hefty charges imposed by the App Store. Developers that have been restricted can take advantage of credit card, bank transfer, wallet, carrier billing, SMS or any other alternative payment method.
Apple operates its App Store under one set of rules applied to developers internationally. While South Korea’s bill is specific to users in the country, it may have a domino effect worldwide.
The bottom line is that consumers need super slick payment models on App Stores; they will abandon their basket if the process becomes tricky. While card transactions are slow and complex, direct carrier billing involves fewer keystrokes and the mobile number is ubiquitous.
Carrier billing is already widely accepted by huge developers with the likes of Spotify, Amazon and Microsoft all using it. With the freedom to bill outside of the App Store, an increasing number of developers are expecting quick and frictionless payment options.
Get ready, the time is coming to add carrier billing into the payment mix.