Paddle Is The Latest Challenger To The App Store In-App Payment System

Its USP is the dramatically lower commission rates.

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Paddle for iOS
Image: Paddle

The Epic Vs. Apple lawsuit ended with both sides losing something. For Apple, the verdict orders it to allow third-party payment systems on the App Store. Paddle, an in-app purchase service provider, is now trying to become an App Store purchase alternative with better offers.

Paddle’s website says the company already caters to more than 2000 software businesses. In a statement to The Verge, Paddle informed that it had created multiple versions of the system to suit how Apple decides to implement third-party payment options on its App Store. However, the company’s main selling point here is the lower commission rates compared to Apple’s.

Apples To Paddles

Apple’s own in-app purchase mechanism charges the developers between 15% to 30%. A paddle is offering the same services at 5% to 10% charges only. These reduced commission rates can help developers make more money or even offer a cheaper subscription through Paddle.

Going into detail, Apple takes a 15% commission from apps making less than $1 million in a year on the App Store. The bite increased to 30% in the case of apps making over a million dollars. Compared to this, Paddle is offering to charge 10% on transactions below $10 and a 5% + $0.50 charge for transactions from $10 and above.

Paddle’s website also draws a comparison between Apple and Paddle’s in-app purchase systems. From that comparison, Paddle is promising refund/dispute management, coupons, subscription management, and some other bells and whistles over Apple’s system. However, one of the things to keep in mind is that you won’t be able to use the Hide My Email service with Paddle.

The same comparison says it gives developers “access to customer email for support.” It means your email ID will be forwarded to the developers, and you may have to unsubscribe from every app’s emails individually. On the other hand, developers should be able to get in touch with their customers directly. It also allows for more options and flexibility in payment methods.

Paddle won’t be much of a change from the App Store’s in-app purchase mechanism for the average user. It is up to the developers to use Paddle as a payment option.

Manik Berry

Manik Berry

With a Master’s degree in journalism, Manik writes about big tech and has a keen eye for political-tech news. In his free time, he’s browsing the Kindle store for new stuff read. Manik also adores his motorcycle and is looking for new routes on weekends. He likes tea and cat memes. You can reach him at [email protected]

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