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Software Revenue Platform Paddle to Compete Against Apple’s In-App Purchases

Beginning on Dec. 7, revenue delivery platform Paddle will offer its in-app purchasing system for iOS, according to a Thursday (Oct. 7) press release. Depicted as a less costly option than the App Store, the London-based company’s in-app purchasing (IAP) system for iOS developers will offer greater control over the user experience, according to the release.

Described as a “drop-in replacement” for Apple’s IAP, Paddle’s system offers a fee structure of 10% for transactions under $10; and 5% on transactions over $10, as compared to Apple’s 15-30% commissions.

The system was developed in direct response to last month’s ruling in the Apple versus Epic Games litigation, according to the announcement, and is focused on offering innovation, competition and choice to iOS in-app payments.

Read more: Apple Nets $6M From Fortnite Maker Following Court Order

Epic Games, the company behind the Fortnite game, was ordered last month to pay Apple $6 million for breaching the company’s App Store guidelines, according to PYMNTS. The companies had battled over Apple’s App Store policies and the question of whether Apple hampers its competition. The court ruling ordered Apple to loosen some of its rules concerning developers. However, the court found in favor of Apple in nine of 10 counts, allowing the tech giant to continue charging 15-30% for its in-app payment system.

The court battle stemmed from Epic’s 2020 implementation of a direct payment option in its Fortnite game. In response, Apple eliminated Fortnite from the App Store.

Related: South Korea Bill Signals Changes for App Store Payments Beyond Google, Apple

Apple’s App Store policies have come under fire in South Koreas as well. As PYMNTS reported in August, South Korea’s parliament gave the green light for new mandates on Google and Apple that would open up payments optionality to app developers. The legislation means there is now payments choice within those companies’ apps, helping developers avoid paying the 15-30% commissions per transaction to Apple and Google.

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