App developers can now pay third parties after Apple bends to South Korea’s demands

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It’s now possible for apps that are only sold in South Korea to use their own in-app payment mechanism, but Apple will still ban key App Store features if they do so — and still take a 26% share.

Now that South Korea has enacted new app store laws, Apple has officially authorized developers to implement their own in-app payment methods. To avoid Apple and its App Store, developers have the option to accept payments from other sources—but only if they meet certain restrictions.

App developers that meet certain requirements, according to a new Apple support document, are able to make use of the company’s “StoreKit External Purchase Entitlement functionality.”

Apple claims that “this entitlement provides apps distributed on the App Store solely in South Korea the ability to provide an alternate in-app payment processing option.” If you are considering using this entitlement, it is important to understand that some App Store features, such as Ask to Buy and Family Sharing, will not be available to your users. This is due in part to the fact that we are unable to validate payments that take place outside of the App Store’s private and secure payment system.

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According to the company, there are no refunds, purchase histories, subscription management, or other concerns Apple can help with when purchasing digital goods and services using an alternate purchasing method. There are issues you’ll have to deal with, “he says.”

Instead of paying 30% of every transaction to Apple, eligible developers must bear the full cost of the payment processing. This is a significant save. Although Apple acknowledges this and cuts its costs, the company does not eliminate the fee from its services.

“Apple will charge a 26 percent commission on the price paid by the user, gross of any value-added taxes,” reads the developer’s instructions. “This is a discounted rate that does not include the value of payment processing and related operations.”

All sales must be reported by developers on a monthly basis. In accordance with the terms and conditions of the entitlement, Apple has audit rights, as stated in the documentation.

You could lose money in other regions if you don’t pay Apple’s commission, which could lead to your software being removed from the App Store or you being kicked out of Apple’s developer program.

 Apple’s earlier replies to the South Korean law were deemed insufficient by the country’s authorities.

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