Paddle has announced its plans to launch an in-app alternative payment system that will replace Apple’s built-in IAP system for the App Store.
For others, Paddle is a SaaS business founded in 2012. It claims to have more than 2,000 software companies dependent on its sales platform in 200+ markets worldwide. Its clients include Setapp / MacPaw, Scrivener and AdGuard.
The platform describes its payment system as a “true similar replacement” for Apple’s IAP system. Paddle’s system allows developers to collect payments without giving Apple a 15-30 percent commission.
Paddle promises that his fee structure will be “highly competitive,” with a 10 percent fee for transactions below $ 10 and a five percent plus a $ 0.50 fee for transactions greater than $ 10. The platform says its payment system would include access to customer data, such as email addresses. This would help developers convey news about products, offers, flexible pricing and subscription options, direct customer service, and more. Apple’s IAP does not offer developers this level of transparency.
In a video on its website, Paddle shows the app with Upgrade now a button that redirects to Paddle’s payment system on the web. Users can then choose from one of many payment options, including Apple Pay, PayPal and credit card.
From today, developers will be able to register their interests in Paddle’s IAP system. It is planned to be broadcast on December 7 this year. Paddle’s move is a response to the recent verdict of Epic Games vs Apple. The U.S. District Judge who ruled on the lawsuit said:
Apple can no longer prevent developers from “in addition to in-app purchases, including in their apps and metadata buttons, external links or other calls to action that direct users to purchase mechanisms.”
It is clear that Paddle is boldly interpreting the verdict and is making rapid progress in that direction. However, we believe it is unlikely that Apple would have bowed so easily and given up the commission it earns from IAPs. Do you think Apple would allow Paddle to continue using the new IAP system without interruption?
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