Patreon to Update iPhone App to Bypass Apple's Payment Fees
Following a landmark court ruling that restricts Apple from charging fees on payments made outside its in-app system, Patreon announced plans to update its iOS app. This update will allow creators to accept payments directly, bypassing Apple's 30% commission. Patreon emphasizes this as a significant win for creators, enabling them to retain more revenue from iOS-based fan payments. Other platforms like Spotify and Proton are also preparing similar updates to reduce costs for users.
Patreon is preparing to update its iPhone app to allow creators to accept payments outside of Apple’s in-app purchase (IAP) system. This move follows a significant court ruling in the Epic Games v. Apple case, which prohibits Apple from collecting fees on payments made outside of its apps.
Apple’s standard 30% commission on in-app payments has long been a point of contention for creators and app developers. Last year, Patreon was compelled to adopt Apple’s IAP system to avoid removal from the App Store, despite the high fees impacting creators’ earnings.
Patreon spokesperson Adiya Taylor described the update as a “huge moment for creators and their businesses,” emphasizing that the iOS app is the primary platform for fan engagement. By enabling payments outside of Apple’s system, creators can retain more revenue from their iOS-based supporters.
Other major platforms have announced similar plans following the ruling. Spotify intends to quickly submit an update to enhance the consumer experience in the U.S., while Proton’s CEO revealed plans to lower prices by up to 30% for users by bypassing Apple’s fees.
This ruling and the subsequent app updates mark a pivotal shift in how payments are handled on iOS, potentially reshaping revenue models for app developers and content creators. It opens new opportunities for platforms to offer more competitive pricing and greater transparency to users.
Broader Implications for the App Ecosystem
Apple’s 30% fee has been a significant revenue source but also a barrier for many developers and creators seeking to maximize their earnings. The court’s decision challenges Apple’s control over app payment systems and could inspire further regulatory scrutiny worldwide.
For creators, this means more control over their revenue streams and the ability to offer fans alternative payment options without incurring high fees. For users, it could translate into lower prices and more transparent payment processes.
Developers and businesses must now adapt to this evolving landscape by implementing flexible payment solutions that comply with new legal frameworks while maintaining seamless user experiences.
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