Just about a month after the Epic V. Apple has been widely criticized for its monopoly-like running of the App Store. There aren't third-party stores to compete with it, payments have to be run through Apple's systems, and it charges anywhere from 15 - 30 percent as a cut it takes from all transactions.
Back in September, some progress was finally made to try and improve things. After over a year of lawsuits, Judge Yvonne Gonzalez Rogers gave her official ruling on the Epic V. Apple case. Part of the ruling requires Apple to allow alternative forms of payment when making a purchase in the App Store. Developers can keep using Apple's built-in payment system if they want, but starting on December 7, third-party solutions have to be available.
Leading up to that December 7 date, nstead of charging developers 15 - 30 percent, Paddle allows developers to keep a lot more cash in their pockets. Transactions below $10 incur a 10 percent fee, whereas transactions that are $10 or more have a 5 percent + $0.50 fee.
Other Details On Paddle's Payment System
In addition to lower fees, Paddle's also touting itself as having features not found with the App Store's payment system. These include things like email , the ability for developers to directly refund customers, an option to change the payment method for a subscription, etc. As Paddle explains on its website, "When selling with Paddle, your apps stay on the App Store, but we make the sale – just like Apple. This means we’re liable for all the painful purchase , from global sales taxes to customer . There’s nothing new for you to worry about."
All of that sounds good on paper, but there is one big thing to take note of. In short, offering lower transaction fees comes at the cost of privacy. In one section on its website, Paddle says it "can give sellers far greater access to data on each customer throughout their lifecycle, allowing developers to better understand and optimize the experience at every stage." Most developers would likely use this data to better market and sell their apps rather than anything nefarious. Still, handing over an unknown amount of information is a big ask for s — especially when dealing with a developer or company someone's not very familiar with.
For developers who are interested in using Paddle for their own apps, they can a waitlist now ahead of the December 7 launch. As for whether or not Paddle will be a viable alternative to App Store payments, that remains to be seen. The lower transaction fees are a considerable improvement over what Apple charges. However, anyone who values their privacy will likely have a hard time giving Paddle any of their business. There are bound to be more alternatives like this coming soon. At the very least, Paddle sees like an interesting first attempt that'll be worth watching.