Paddle announces alternative to Apple’s in-app purchase system to bypass app tax

Following the ruling of Epic Games vs. Apple where the court ordered the Cupertino tech giant to allow developers to offer alternative payment options, software company Paddle has announced an alternative to Apple’s in-app purchase system in App Store.


Paddle unveils alternative in-app purchasing system for iOS developers to circumvent Apple’s app tax

The global revenue platform Paddle has announced the first alternative In-App Purchasing (IAP) system for iOS developers to use instead of the system offered by Apple. The new service is slated for release on 7th December 2021, in line with the terms of the court ruling

“Paddle’s new offering is a direct response to the recent ruling in the Apple vs Epic lawsuit,” says the company in a press release. “Paddle In-App Purchase is a true like-for-like, drop-in replacement for Apple’s IAP, allowing developers to maintain a seamless user experience, without having to pay Apple 30% of every sale.”

The company does on to say that it has a “highly competitive fee structure,” charging just 10% for transactions under $10, and just 5% on transactions over $10. This will allow developers to earn more revenue from every in-app purchase.

“Our alternative In-App Purchase offering gives developers the chance to retain all the things they like about the App Store, while also giving them greater control and lower costs,” said Christian Owens, Founder, and CEO of Paddle. “We’re incredibly excited to be rolling this out and look forward to helping customers get set up and ready for the switchover in December.”

However, Paddle’s announcement is premature. Judge Yvonne Gonzalez Rogers has given the tech giant until December to update its App Store guidelines in line with the ruling. Despite Paddle’s bold service based on an interpretation of Rogers’ ruling, it seems highly improbable that Apple will allow developers to use alternative in-app payment systems that bypass its fees.

Apple Inc. and its officers, agents, servants, employees, and any person in active concert or participation with them (“Apple”), are hereby permanently restrained and enjoinedfrom prohibiting developers from (i) including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to In-AppPurchasing and (ii) communicating with customers through points of contact, obtained voluntarily from customers through account registration within the app.

The tech giant has previously said that alternative payment systems in apps could threaten user privacy and security. Apple could reject apps submitted to its App Store if they offer alternative payment systems for in-app purchases.

Read more:

About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.