Apple recently announced that dating apps in the Netherlands will be able to provide an alternative payment mechanism, with a cut of 27 percent net of tax instead of the usual 30 percent. This may appear to be a significant triumph for developers, but they will also have to overcome extra obstacles to include those payment choices. We’ll get into those specifics right now.
Apple is rumored to be making things harder for developers who provide users the option of using third-party payment methods. To begin, such developers must obtain special approval from Apple to integrate a specific API, as well as notify clients that they would be transferred to a third-party payment alternative.
“Apple will charge a 27% commission on the price paid by the user, net of value-added taxes. This is a reduced rate that excludes value related to payment processing and related activities. Developers will be responsible for the collection and remittance of any applicable taxes, such as the Netherlands’ value-added tax (VAT), for sales processed by a third-party payment provider.”
Apple asks developers to submit reports detailing their sales to keep track of how much money they make. Later, the tech behemoth will send out invoices for its commission, which must be paid within 45 days of receipt. Given that the difference between using Apple’s integrated payment system and third-party solutions is only 3%, it’s not unexpected that developers will abandon this path and return to what they were doing previously.
Given the number of steps developers must take, it’s no surprise that several of them were outraged by this decision.
Someone else pointed out that, due to the increased price, using the third-party payment will revert the developers to the same 30% commission rate that Apple was charging earlier.
In short, it appears to be Apple’s method of making things extremely difficult for these developers, and based on the conditions, we predict that the vast majority of them will return to Apple’s integrated payment system.