Apple’s Grip on In-App Purchases Loosens: Stripe, Spotify, Patreon Gear Up to Bypass Apple Fees
The tech world is buzzing after a landmark court ruling that prevents Apple from restricting developers from directing users to web-based payment options within their apps. This decision is poised to shake up the iOS ecosystem and potentially save developers substantial amounts in commission fees. Leading the charge are companies like Stripe, Spotify, and Patreon, all of whom are actively preparing updates to bypass Apple's in-app payment system.
Stripe, a prominent payments processor, has already rolled out new documentation guiding developers on how to accept payments outside of the iOS App Store. This move empowers developers to avoid Apple's hefty 15-30% commission on in-app purchases (IAP), instead opting for Stripe’s standard 2.9% + 30¢ per transaction. While Apple's IAP system offers a seamless, native interface with built-in subscription management and security, Stripe provides greater flexibility, broader payment options, and more control for developers.
Michael Luo from Stripe announced on X (formerly Twitter): "Big news iOS app developers! You can now accept payments with @stripe outside of your app, with no iOS app store commissions."
Other major players are also jumping on board. Spotify confirmed to The Verge that they are planning an update to "enhance the experience for our consumers across the United States." Patreon, a platform heavily reliant on creator subscriptions, is also gearing up to implement external payment options. According to spokesperson Adiya Taylor, "This is a huge moment for creators and their businesses. The iOS app is the number one platform for fan engagement on Patreon, and we believe this ruling allows creators to get paid without giving Apple 30 percent." Patreon intends to submit an app update enabling payments outside of IAP, allowing creators to retain a larger share of their earnings.
Proton's CEO, Andy Yen, even suggested that they could lower prices for users by up to 30% as a result of bypassing Apple's fees. This highlights the potential benefits for consumers as developers pass on the savings.
While Apple has stated its intention to appeal the court's decision, it's unclear if they'll be successful. The prospect of reverting to the original system once users experience the benefits of alternative payment options seems unlikely. The implications of this ruling are far-reaching, potentially reshaping the economics of the App Store and giving developers more control over their revenue streams.
What do you think about this shift in power? Will this ultimately benefit consumers with lower prices? Share your thoughts in the comments below!
