Home industry banking-and-finance apple to let apps in South Korea use third-party payment systems
Banking And Finance
CIO Bulletin
2022-06-30
App developers in Apple’s South Korean App Store no longer have to use the firm’s in-app payment system, the tech giant announced in a developer update.
Developers will now be able to take payments using the third-party service providers pre-approved by Apple.
The change arises in response to an amendment to South Korea’s Telecommunications Business Act passed last year, preventing large platform holders like Google and Apple from forcing developers to use their first-party in-app payment solutions. Both Google and Apple opposed the legislation, with the iPhone maker arguing that it would make it harder for its users to manage their purchases, undermine their privacy protections, and put them at risk of fraud.
Notably, the law threatens the lucrative commission that Apple charges developers to use its in-app payments system. This so-called “Apple tax” is almost 30 percent of the price paid by the user. This Apple tax has been the focus of many developer complaints.
Although South Korea is forcing Apple to allow developers to use alternative payment systems, the tech giant still intends to collect a 26 percent commission made through third-party systems.
To use third-party payment systems, interested developers will need to submit a form to Apple to request access to the “StoreKit External Purchase Entitlement,” which is only available to apps distributed exclusively in South Korea. If in case the app is available globally, developers will need to submit a separate app binary “that is distributed solely on the App Store in South Korea.”
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