Apple allows apps from South Korea to use third-party payment systems

Alexander Schmid

July 01, 2022 at 5:15 p.m.


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Apple opens up access to third-party payment systems for App Store apps, but puts up many barriers to make the switch unattractive.

Forced by a new law, the Cupertino company no longer requires it to go through its own payment system in South Korea for application purchases, in-app acquisitions and subscriptions.

Apple follows the law

The apple brand fiercely opposed the adoption of this law. According to her, it risks making the purchase management experience more complicated for consumers, their privacy would be endangered, and fraud would be higher.

This seems to be a means of protecting the commissions that the American firm takes on each transaction. These can reach up to 30% of the amount and are regularly criticized by players in the sector. But Apple’s arguments have not been heard, and the group must now open up to competition on this point in South Korea.

Predictably, Apple is doing everything to complicate the task for developers and make third-party payment systems unattractive in order to retain applications on the payment platform managed by the App Store.

Rules to discourage switching to alternative payment systems

First of all, switching to an alternative payment system does not allow you to get rid of the famous commission, since Apple imposes the collection of 26% of the revenue generated. Publishers will have to declare all their earnings to the firm and remunerate it on a monthly basis. This still seems to leave room for publishers to understate their revenue from Apple to avoid paying too much commission.

Developers must also ask Apple for permission to access a toolkit that allows them to switch payment systems. This will only be granted if the application is exclusively available in South Korea. If it can be downloaded from App Store in another country, permission will always be denied.

A solution for the developers is then to distribute a copy of their application which is reserved for the South Korean market. This necessarily adds constraints and additional work to be done.

Another restriction is the requirement that purchases be made within the application itself, and not from a web page to which the user is redirected. Combined, all these rules should discourage many publishers and developers from abandoning Apple’s payment system.

On the same subject :
App Store: ban on cloud gaming and mandatory use of WebKit declared anti-competitive

Source : The Verge

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