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| The potential impact of providing third-party payment methods through the App Store |
Epic Games has proven its power by legally challenging Apple, and the company has already failed to achieve its primary goals, such as returning Fortnite to iOS. However, the outcome of this lawsuit may lead to drastic changes in the App Store.
The US court ruled through Judge Gonzalez Rogers that Apple offers third-party payment methods in apps and games in the App Store. In other words, developers can add third-party payment methods in addition to the standard payment method that Apple has completed.
There is no doubt that this move will have a negative impact on Apple's revenue from the store. The company generates just $19 billion in revenue each year with 30% of app and game sales on the App Store.
Apps and games for iOS and iPadOS are only available from the Apple App Store. For its part, the court did not require Apple to provide external means to download applications and games, and Apple did not reduce its share of sales.
Offer external payment methods through the App Store
The new law primarily affects the US market. Because the law currently applies to this market only. But that didn't make things better. This market alone guarantees $6.3 billion of Apple's $19 billion. This is clear from Bloomberg.
Paid apps and games are not affected by this new law. Because these purchases are subject only to Apple's purchase of the system. But in-app purchases and free games are about to change completely.
In fact, developers can provide third-party payment methods in the app. If the top developers move quickly, the impact on Apple will be catastrophic.
In fact, 95% of all App Store sales come from 2% of developers. Any great app.
70% of App Store revenue comes from games and up to 98% of in-house payments also come from gaming apps. This is because they are continuous and sequential payments, and some are monthly payments.
If we look at the list of the most popular games on the App Store, we find that all the games except for Minecraft are free games with paid games.
On the other hand, the personal decision of the user will have a huge impact. Since 70% of Apple's gaming revenue comes from only 10% of gamers, since they are the most consumer players, Apple will be affected faster if they want to pay through third-party payment methods.
But what could ease Apple's dilemma is that users are more willing to use traditional payment methods. Since it is the most secure and convenient, it is highly dependent on the implementation of a third-party payment system.
Developers at work
Several developers have announced that they will use external payment methods. If there are no new discoveries, it will be available on December 9. Epic Games has announced that it will appeal the decision, and Apple will also appeal.
Hey, the developers of the email management app have announced that they will be using the new payment method right away. This was after they went to war with Apple last year over its huge share of the compensation.
Contrary to what some expected. Most developers are not enthusiastic about the new system. Because Apple's payment system in the App Store provides application developers with many advantages, such as ease of collection and integration into tax systems in many countries, as well as easy refunds and integration with Apple Pay services.
In general, Apple will not lose its huge share of payment unless well-known apps choose to support external payment methods on the one hand and users rely on those methods on the other.