December 8, 2020
Posted by: Daniel McMahan
Apple will be reducing in-app purchase fees from 30% to 15% for purchases under one million dollars per year, starting in 2021. We should have more information on the small business program application process by mid to late December.
Apple has been under pressure for quite some time to justify why they’ve charged businesses a 30% fee for all transactions using apps in their App ecosystem.
There have been quite a few businesses that have tried to divert in-app purchases outside of the iPhone/iPad apps themselves or flat out sue Apple. Netflix and Fortnite developer Epic Games have made the biggest splashes on those fronts.
There is an argument that if Apple didn’t provide the app platform for the transactions, the business wouldn’t have the opportunity for the sale, so they can charge what they please. There’s also an argument to be made that the percentage is too much and unjustified, which could be comparable to extortion because they’re the only game in town. Well, unless you count Google Play, but that’s a whole other conversation.
What This means For You
If you haven’t created an iPhone or iPad app yet because you couldn’t justify the percentage of the fees on in-app purchases charged by Apple, this might be that extra push that you’ve needed. Our team of experts has the necessary experience with iOS development to help your app ideas come to life, giving you the confidence you need to reach your mobile audience.
Anyone that already has an app in the Apple app store will be happy to see their payouts increase after they submit their application for the “small business program” at the beginning of the year. The lower fees make it a great time to expand your current features and offerings to increase your Apple in-app purchases and reach more customers.