App Store Developers in South Korea Can Now Use Alternative Payment Providers

[MacRumors]

Apple has informed App Store developers in South Korea that they can now begin offering users alternative payment systems in their apps. The change comes after the country passed a law that bans app store operators from requiring developers to use their own in-app purchase systems.

Apple's developer update on apps distributed in South Korea begins with Apple saying that the App Store was designed "to be a safe and trusted place to discover and download apps," but continues by explaining that the change is simply to ensure that the company is complying with local law:

The Telecommunications Business Act in South Korea was recently amended to mandate that apps distributed by app market operators in South Korea be allowed to offer an alternative payment processing option within their apps. To comply with this law, developers can use the StoreKit External Purchase Entitlement. This entitlement allows apps distributed on the App Store solely in South Korea the ability to provide an alternative in-app payment processing option. Developers who want to continue using Apple's in-app purchase system may do so and no further action is needed.

Apple goes on to caution developers that using the entitlement will cause some App Store features like Ask to Buy and Family Sharing to be unavailable to their users. The reason for this, Apple explains, is because payments that take place outside of the App Store's own payment system cannot be validated. As such:

"Apple will not be able to assist users with refunds, purchase history, subscription management, and other issues encountered when purchasing digital goods and services through an alternative purchasing method."

Apple provides developers with a list of pre-approved payment service providers (PCPs) in South Korea that includes KCP, Incise, Toss, and NICE. Developers can still use a different PSP, but it must meet the same criteria of having a secure payment processing system and an established track record of protecting user privacy. Notably, Apple will earn a 26% commission on all processed sales, despite the Korean regulator's misgivings about commissions taken on third-party payment systems.

Developers interested in using the StoreKit External Purchase Entitlement for apps in South Korea can get started by submitting an entitlement request form.

Article Link: App Store Developers in South Korea Can Now Use Alternative Payment Providers

 

[FelixDerKater]

It’s coming for every market.

 

[HappyDude20]

It’s coming for every market.

Yeah. I agree.

On the one hand many new merchants and providers coming into the game.

On the other, more opportunities to get scammed and conned outta your own money.

 

[bgraham]

Notably, Apple will earn a 26% commission on all processed sales

For doing precisely nothing. This is monopolist behaviour that needs to be stopped.

 

[contacos]

Why even bother with additional integration troubles as a developer if Apple still takes 26% commission?

Just as inconvenient as Apples „Right to repair“ process.

Sounds nice on paper but

 

[Wildkraut]

26% is still high but acceptable as long we don't have alternative AppStores, because Apple host the Apps etc. Once we get the alternative AppStores and side-loading enforced by DMA, the commission will drop to 0%, just like when you release macOS Apps outside the MacAppStore.

 

[bgalakazam]

How is 26% better and a win over 15%?

 

[glindon]

For doing precisely nothing. This is monopolist behaviour that needs to be stopped.

Free development software and access to the highest per user spending store does not (and will never) come free.

 

[bgraham]

Free development software and access to the highest per user spending store does not (and will never) come free.

Yes it will. If the governments force it tomorrow, Apple will do so.

Apple benefits from developers just as much as those same developers benefit from the App Store - by selling more devices. Although you wouldn’t think so given the extortionate fees Apple charges.

 

[tgt]

Developers have to pay a yearly membership fee, so even without Apple taking their cut the tools and access to that market aren't free.

The apps developers provide also draw people to and keep people on Apple's platforms and paying for Apple devices.

Being hostile to developers could also damage the brand.

Their complete control over the app store has also prevented competition in, for example, pricing models. Preventing developers from charging upgrade fees has encouraged the subscription model so many people dislike.

 

[no_idea]

For doing precisely nothing. This is monopolist behaviour that needs to be stopped.

Lol…sure, how about you go procure your own hardware, networking, service providers, storage, SRE’s, marketing team, and host the apps yourself.

 

[Wildkraut]

Developers have to pay a yearly membership fee, so even without Apple taking their cut the tools and access to that market aren't free.

The apps developers provide also draw people to and keep people on Apple's platforms and paying for Apple devices.

Being hostile to developers could also damage the brand.

Their complete control over the app store has also prevented competition in, for example, pricing models. Preventing developers from charging upgrade fees has encouraged the subscription model so many people dislike.

Just use other tools, we don't badly need Xcode & Co. to develop.
SwiftUI is crap anyway.

 

[cornercandyshop]

This is just yet another PR and nationalistic lobby play at hand; ain’t nuthin to do with privacy, innovation or a walled garden… Government wanted to be seen strong and can win against Apple: msg of ‘we are strong for Koreans and we stand for Korean innovation’ and most will just eat it up. Korean (or any govs for that matter) gov don’t really care if other payments still have to pay Apple commissions, and wouldn’t care for other finer details.

 

[contacos]

Lol…sure, how about you go procure your own hardware, networking, service providers, storage, SRE’s, marketing team, and host the apps yourself.

U already pay an annual fee though

 

[wanha]

For doing precisely nothing. This is monopolist behaviour that needs to be stopped.

Do you seriously believe creating and maintaining the developer tools, the OSes, the App Store, app review, hosting, and so on is "nothing"?

Elizabeth Warren, is that you?

 

[Leo S]

[News Focus] Google’s new billing policy for Korea is under scrutiny again. Why?

When Google announced on Nov. 4 that it was changing its controversial in-app payment policy in South Korea to comply with a revision to the Telecommunications

www.koreaherald.com

Google said last week that it was allowing freedom of choice in payment options for digital purchases made on its app store in Korea. Developers that choose alternative payment systems will get a 4 percent commission reduction, the company added. This means Google will charge a 30 percent commission for payments made with its own billing system but only 26 percent for purchases made through other systems.​

​

An industry source said the cost of using a third-party payment system would easily offset the 4 percent discount. The source also added that Google’s new policy is just an attempt to bypass the law.​

​

Due to the expense of operating alternative payment systems on top of the 26 percent commission that Google charges, app developers will eventually return to Google’s in-app payment system, the source argued.​

​

​

​

Lol…Apple has copied Google's 26% commission level.

 

[neuropsychguy]

U already pay an annual fee though

Does that annual fee cover all of Apple’s costs to run the App Store?

 

[SoldOnApple]

Once the rest of the world catches on this is going to cost Apple trillions of dollars over the next 100 years. I'd like to see the government step in and force Uber Eats to let their delivery drivers tap into alternate ordering and payment systems next. And force Burger King to sell Taco Bell products.

 

[The_Gream]

So many people don’t understand business. They seem to live in an oblivious utopia to how things really work.

“But we pay a yearly developer fee”

That fee is like buying a Sam’s Club or Costco Membership. All it does it get you in the door. You can’t just walk through those stores fill up your carts and walk out with everything for free. You still have to pay for the products/services rendered.

Apple has a right to do business the way they want within the guidelines of the law.

“Oh but Apple wouldn’t be anything with out the developer”

Yeah, but those developers wouldn’t be anything with out the system Apple created and paid for. The street goes both ways, but someone had to pay for it. Apple has a right, just like any other business, to turn a profit.

Is there room for improvement? Yes.
If you don’t like something, don’t support it.

 

[mikethemartian]

Lol…sure, how about you go procure your own hardware, networking, service providers, storage, SRE’s, marketing team, and host the apps yourself.

If a developer were able to do that they would be getting a better deal.

 

[somnolentsurfer]

U already pay an annual fee though

That doesn't even begin to cover the costs to Apple of hosting the large apps of the kind that will actually benefit from this. I pay almost as much for hosting my personal blog with a readership of precisely zero as Netflix/Facebook pay for a single developer account that would be enough to publish all their apps.

If Apple are blocked from taking a cut of in-app purchases, hosting and bandwidth fees to developers are the logical repercussion. Then comes the accusations of monopolistic practices and the court cases to allow anyone to distribute software on iOS. At which point the whole security model is undermined, and my grandfather-in-law will be getting phone calls from 'Apple' telling him his iPad has been hacked, and they can help him if he just follows their instructions.

 

[Wildkraut]

So many people don’t understand business. They seem to live in an oblivious utopia to how things really work.

“But we pay a yearly developer fee”

That fee is like buying a Sam’s Club or Costco Membership. All it does it get you in the door. You can’t just walk through those stores fill up your carts and walk out with everything for free. You still have to pay for the products/services rendered.

Apple has a right to do business the way they want within the guidelines of the law.

“Oh but Apple wouldn’t be anything with out the developer”

Yeah, but those developers wouldn’t be anything with out the system Apple created and paid for. The street goes both ways, but someone had to pay for it. Apple has a right, just like any other business, to turn a profit.

Is there room for improvement? Yes.
If you don’t like something, don’t support it.

Exactly and that’s why laws are being rewritten worldwide, to catch up newer shady anticompetitive practices, simply as that.

LOL developers wouldn’t be anything without Apple. LOL² that was a good one!
You’re talking about it as if Apple invented the software development industry. 🤣

I would rather say Apple wouldn’t be anything without the developers, because most of their crap are built on stuff which existed already, from core libraries to kernels to drivers and core development tools parts and CPU architecture(ARM).

Even their crapy anticompetitive AppStore runs on Java.

Apple is a good puzzler, that’s it.
And since Steve Jobs passed away, they released just crap.

 

[Madmic23]

Free development software and access to the highest per user spending store does not (and will never) come free.

It’s not free, developers have to pay an annual fee. Unless the content is hosted on Apples servers, they should not be getting a commission.

 

[bLackjackj]

Do you seriously believe creating and maintaining the developer tools, the OSes, the App Store, app review, hosting, and so on is "nothing"?

Do you know what,..Apple makes probably enough money from Google to run 10x app stores & still be profitable.

Have a look how much Google pays Apple.to be the default search engine in Safari!

 

[Madmic23]

That doesn't even begin to cover the costs to Apple of hosting the large apps of the kind that will actually benefit from this. I pay almost as much for hosting my personal blog with a readership of precisely zero as Netflix/Facebook pay for a single developer account that would be enough to publish all their apps.

Netflix and Facebook are excellent examples of why Apple shouldn’t be taking a cut. Why should Apple get 30 or 15% of a Netflix subscription when the content is hosted and streamed by Netflix? Apple isn’t doing anything here, they just have an app taking up a tiny amount of space on their App Store.

If Apple are blocked from taking a cut of in-app purchases, hosting and bandwidth fees to developers are the logical repercussion. Then comes the accusations of monopolistic practices and the court cases to allow anyone to distribute software on iOS. At which point the whole security model is undermined, and my grandfather-in-law will be getting phone calls from 'Apple' telling him his iPad has been hacked, and they can help him if he just follows their instructions.

Your grandfather-in-law can still get scammed today by someone from “Apple” calling him and telling him to go to a website to fix an account issue. Apple taking a commission from in-app purchases doesn’t prevent phishing scams.