Questions

We are developing an app for android and iOS that allows users to purchase credits for services. Services would be delivered in app much like Fiverr - Users can provide a service and get paid with credits that can be withdrawn. Apple is giving us some issues with our own payment gateway insisting that we use their IAP. Would there be any work around for the IAP? Assuming no workarounds, how would a company handle the 30% IAP cut? If someone wants to give you hell and purchase credits on iOS (-30%) and withdraw funds immediately on Android. You're out by 30%. Any ideas? Our Dev initially mentioned that cross platform apps should be exempt from apple's IAP. That assumption hasn't worked out so well in practice.

Typically Apple and Google will consider coins and credits a type of digital currency. Under their terms and services these types of products in an application must be transacted through the AppStore and Play Store so they get the 30% cut.

When I worked for Groupon, building their Android application, they were not required to use the IAP from either platform. This is because they were selling a product or service. As you stated - you're selling a service. You may need to change the wording from "Credits" to "Balance" (or something similar to that) and have that reflected as actual dollar amounts in the app. I would also be very clear that you are selling a service - not digital goods. If this is truly what you are doing (selling a service), then you should be in the clear.

Disclaimer: These TOS change all the time. The last time I dove in and read one end to end regarding IAP was about nine months ago. But I'm fairly certain the service and product thing still applies. You may want to consult your lawyer and review the TOS with them to be sure you're not in the grey area.


Answered 9 years ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2024 Startups.com LLC. All rights reserved.