First ‘true alternative’ to Apple App Store announced: Paddle commission is one-third of ‘Apple Tax’

Apple Tax Paddle Revenue Delivery System In-App Payment External Third-Party
A cheaper Revenue Delivery System for iOS and iPadOS app developers? Pic credit: Sean MacEntee/Flickr

Even while Apple Inc. Vs. EPIC Games legal battle rages on over the former’s tight control over the iOS App Store, a new “true” alternative for ‘Apple Tax’ is here. Paddle, a Revenue Delivery Platform for SaaS companies, has announced its ‘in-app purchase’ platform that works similar to Apple Inc.

A recent ruling strongly in a U.S. court indicates Apple App Store may soon have to allow external or third-party payment platforms. In anticipation of the same, Paddle has announced a new, parallel, in-app payment platform for iOS and iPadOS apps.

What is the Paddle In-App Purchase system and why is it the ‘industry’s first alternative In-App Purchasing system for iOS’?

There’s little doubt that Apple Inc. is under intense pressure to open up the doors of its extremely well-guarded doors of iOS App Store. The company has tightly controlled all the aspects of its app marketplace and governed the same with iron fists.

Then came EPIC Games and launched a legal assault on Apple Inc. The Fortnite-maker even has the Coalition for App Fairness fighting the iPhone maker.

Several courts and even governments around the world seem to view Apple Inc. as “anticompetitive”. Some Judges have even indicated that the company has some questionable business practices.

In essence, Apple Inc. may have to relax its reins over the App Store. The company recently allowed app developers to offer information about external payment platforms. However, app creators still cannot use their own apps to offer this information.

Apple Inc. could eventually be forced to allow third-party payment systems. This could decimate one of the company’s most lucrative revenue sources: the infamous Apple Tax.

Paddle is trying to offer a ready-to-deploy, in-app payment platform that exactly mimics Apple Inc. In other words, instead of app users making their payments through Apple Inc.’s system, developers could redirect their paying customers through Paddle.

Paddle claims its “Paddle In-App Purchase” system is the “industry’s first alternative In-App Purchasing system for iOS.” Its official website claims the platform offers “all the same benefits of the App Store, without the hefty price tag, and with greater control over the user experience.

How is Paddle Tax different from Apple Tax, and why should developers choose to funnel their paying customers through the alternative?

Paddle is essentially targeting app developers who complain about the Apple Tax. Apple Inc. currently charges a 30 percent commission for every sale that takes place inside the App Store.

The company does offer some discounts, but this incentive program automatically ends when a developer makes more than a million dollars. The company recently offered some big tech giants customized concession packages.

Paddle claims it is a “true like-for-like, drop-in replacement for Apple’s in-app purchase” system. The company assures it will take just 10 percent commission for transactions under $10 and just 5 percent on transactions over $10. This means that developers earn more from every purchase.

It is important to note that the Paddle Revenue Platform may or may not see itself as a true alternative to Apple Tax. This is simply because neither Apple Inc. nor EPIC Games have expressed complete satisfaction with the recent ruling.

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