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US Developers Shun App Store’s Alternative Payment Options

iPhone 15 Gaming | Game Mode | iOS 17

iPhone 15 Gaming | Game Mode | iOS 17

Apple introduced changes to its App Store policies, now permitting developers to direct customers to external payment systems.

This revision was a response to a legal directive from the antisteering ruling in Apple’s largely victorious lawsuit against Epic Games in 2021. However, as per Apple’s recent court testimony, the uptake has been minimal.

By the start of 2024, despite over 65,000 developers being eligible to implement these links, only 38 applications have been filed to use this option, and notably, none came from significant players in the industry.

Developers argue that the financial incentives for switching are absent. Apple imposes a 27% fee for those opting to use external payment links, close to the standard 15% to 30% commission for in-app purchases made through Apple’s system.

This rate excludes additional costs from third-party payment processors, potentially elevating total charges above 30%.

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During a recent court session, Apple’s finance chief Alex Roman acknowledged the company had not evaluated the complete financial impact of using third-party payment systems on developers.

This oversight drew criticism from Judge Yvonne Gonzalez-Rogers, who questioned Apple’s commitment to adhering to her previous ruling’s spirit, suggesting the company aimed to preserve its existing revenue structure.

The debate continues, with the court set to reconvene on the matter soon, providing Apple with another chance to justify its approach and potentially adjust its strategy in light of the judge’s concerns and developer feedback.

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