Apple must let other payment providers into the App Store for the first time this weekend. These experts explain which companies will benefit from this momentous change.
Apple must let dating apps in the Netherlands use other payment services by this weekend.Experts share which companies will benefit from this major change to the App Store.
Although this is only a segment of apps within one country, opening up App Store payments to third-parties is a major evolution for the App Store. Apple is fighting this every step of the way, but it's likely to happen in other countries, too. The Korea Communications Commission ordered Apple and Google in December to allow third-party payments for all apps, and Apple told the Yonhap News Agency that it respects Korean law.
Consumers spent more than $133 billion on app-related purchases last year, SensorTower estimates. If developers are free to user cheaper payments alternatives to Apple and Google, that could save millions of dollars, boosting profit margins or lowering costs for consumers, or both. "The bigger implication is that as more countries allow alternative payments, that puts greater pressure on Apple and Google to allow that across the globe," Khajuria said.Large payments companies, such as Stripe, and PayPal and its Braintree unit are well positioned to benefit, according to Ronak Doshi, a partner at research firm Everest Group.
"We've postponed our launch as Apple secured a delay on App Store changes to In-App Purchases on December 8th," Paddle says on its website."We'll share an update once Apple clarifies what will be allowed regarding third-party IAP payments."Doshi said the threat of new payments competition will likely encourage Apple and Google to lower their app store fees.
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