Legendary tweets by certified apple fanboy & one of the app store's most successful developers (@nikitabier) who's App tbh sold to FB within 73 days of launch.
Im ashamed to admit I used to be one of those people in his first tweet. I fully support the bill to enable developers to use whatever payment gateway they want - I explain my reasoning below.
Apple's enforcement of In-app purchase is purely arbitrary, its easy money. The Apps in the App Store have infinitely many business models, advertising is one of the biggest. Apple tried to sell their own ad products (iAds) under Steve jobs which flopped because it turns out you need good data for ads to work so developers never adopted it in their apps. So now plan B is to force the entire app economy under In-App purchase paywall so they can get 30% while kneecapping advertising companies under the banner of privacy (Excellent move which I mostly support but not blindly. I love my privacy but also see clear as day that its a business move since iPhone sales are stalling. They need growth elsewhere).
Facebook and Google are some of the biggest advertising companies. Billions of FB & Google ads (Which are digital goods) are bought through iPhones yet no enforcement of In-App Purchase here why? Its way too complex a transaction for Apple to handle. In fact Apple says,
YOU CANNOT USE OUR PAYMENT SYSTEM FOR THIS, USE YOUR OWN. Its not as simple as
buy and unlock in a game, there's performance involved and internal metrics that apple wants no part of, so all of advertising related transactions get a pass (Turns out privacy & trust are not an issue here).
Then there are businesses selling physical goods and services like Uber, Airbnb, Amazon, Etsy you name it. Again, super complex transactions involving fulfilment of physical goods and services, Apple wants no part of this, it involves work and knowing the inner working of each company's relationship with its customers. Once again.
YOU CANNOT USE OUR PAYMENT SYSTEM FOR THIS, USE YOUR OWN.
Which leaves us with the
Cute Transactions (Digital goods that are not Ads). $0.99 for a new fortnite skin, $1.99 to unlock a level in a game. $9.99 subscription e.t.c. They involve knowing nothing about your business or customer, they involve almost zero customer service on the backend, and that's where Apple enforces use of its In-App Purchase under the Banner of Privacy and Trust! (
Reality: It was the easiest business model to get away with) 👈 This is where Apple screwed themselves. Either you have a universal payment gateway for everything on the App Store with no exceptions or everyone gets a choice. After all, developers host their own databases, servers and other tools
(No talk of privacy and trust here) but Payments (Which is literally just another piece of software like a database or server), that's where we are supposed to get all holy about privacy and consumer trust?
Refer to the first tweet please (That used to be me, I was a fanboy). Fun Fact - When we say
"Use our own payment system" we dont mean developers are building it themselves (NO), this a god level undertaking. We mean using a third party like
Stripe which 80% of the internet uses including Apple Pay, Shopify. Well known payment providers whom trust me, You have 100% used in your online transactions whether on iPhone or web (You have spent MORE on them than Apples In-App purchase).
My opinion on In-App purchase. For small-time developers earning couple hundred thousand to tens of millions, its an excellent payment system. Even if the law passes, developers are not gonna abandon it. Its trusted, you don't have to do any work in creating trust so people can input their credit card, handle expired cards, refunds, e.t.c. This alone is SUPER VALUABLE. Well worth 30% for most if you ask me. I would bet 98% of developers would stick with it. Its not worth leaving (I wouldn't).
BUT - It still has to be a choice. You CANNOT build a venture scale business on top of In-App purchase, you just can't. Airbnb, Uber, Etsy, Amazon, Netflix, Spotify, Robinhood, Banking are NOT POSSIBLE with this payment system. Those businesses aren't just transactional businesses, they are trusted marketplaces, they build user experiences and personal relationships with their customers and frictionless payment flows that ARE NOT POSSIBLE with apple's one-size fits all In-App Purchase. In enforcing In-App purchases, Apple is saying, only they can build for trust, no one else.
If you have transacted with Uber, Airbnb, Etsy, Amazon, Spotify or Netflix, Stock apps (None of them use In-App purchase and Apple won't let them even if they wanted) on your iPhone and you defend apple on this -
Refer to Nikita's first tweet please (That used to be me, I was a fanboy).
For those who claim, It's Apple's store, developers are freeloaders - Check your Screentime and tell me how many of Apple's apps dominate your top 10-20? You didn't buy that phone to use iMessage & Safari guaranteed!
Thank you.