> It’s an uncomfortable truth, but most publishers can’t be reasonably trusted with personal information like email addresses and phone numbers.
Citation? Anything? That point isn't well explored but it is a "truth" apparently.
What Apple Pay Could Mean for In-App Purchases
21–30 of 42 posts
Re: What Apple Pay Could Mean for In-App Purchases
#22Earlier quoted context omitted.
Banks make money from credit cards by * charging a % from each transaction * late fees * interest on balances This assumes banks make less money on transaction fees than they do on the other two when coupled with the potential for fraud... An interesting assumption...
Is this how it works? My assumption was that Mastercard, Visa, American Express, and Discover were the ones that made the % of each transaction and then the issuing banks were the ones that made the money from fees and interest.
It's my understanding banks also charge a transaction fee (may be flat per-transaction rather than a percentage.) (Source: I work for an online ticketing company, so we deal with these types of things.)
Re: What Apple Pay Could Mean for In-App Purchases
#23Earlier quoted context omitted.
Banks make money from credit cards by * charging a % from each transaction * late fees * interest on balances This assumes banks make less money on transaction fees than they do on the other two when coupled with the potential for fraud... An interesting assumption...
Is this how it works? My assumption was that Mastercard, Visa, American Express, and Discover were the ones that made the % of each transaction and then the issuing banks were the ones that made the money from fees and interest.
Most of the fees end up back with the card-issuing banks. That's how they pay for the rewards programs, and why the fees are higher for rewards cards than other types.
Re: What Apple Pay Could Mean for In-App Purchases
#24"The 30% IAP cut equals billions of dollars in yearly revenue. But being in this commission business is not in Apple’s DNA." I would say it is entirely in Apple's DNA. Apple has aggressively tried to inject themselves between sellers and buyers in multiple markets, even where their value add is unwanted and unnecessary. And I don't fault them at all for that. They're a business and they're doing what businesses do, g…
The 30% as far as I understand is roughly covering the cost of running the app store. I.e. huge revenue but not really much profit.
I would be really surprised by that. The gross 30%, presuming it always applied, would be about $6 billion per year, which would be an enormously expensive online store. Of course Apple's cut is often lower than 30% -- I can frequently buy $100 iTunes cards at Costco for $80, for instance, and then add that the retailer surely gets a cut as well.
Nonetheless, the iTunes empire is currently doing almost $20B of business a year, with a $6B cut. The NFL, in contrast -- for all its seeming enormity and influence -- is about a $8B business, gross.
Re: What Apple Pay Could Mean for In-App Purchases
#25So companies[1] that had to previously shut down because of the 30% can return? [1] - http://www.cnet.com/uk/news/as-iflow-reader-app-closes-harsh...
Almost certainly not.
Credit cards have always been a usable payment method, Apple Pay just makes them easier to use in an app. No one used them for IAP of digital goods because Apple forbade that on a policy level, which is likely to continue. Likewise, apps already allow credit card purchases for real-world items like Uber rides, Amazon physical items, etc.
Re: What Apple Pay Could Mean for In-App Purchases
#26What I would like to know is if Apple has any plans to make Apple Pay available for the mobile web?
Implementation issues aside, I am not too hopeful on that front. Which is really a pity, because it would be so much more useful in a browser context.
For one-time purchases I am not downloading an app, and even for shops I use regularly I overwhelmingly prefer the web, because most apps are markedly inferior to their browser cousins.
See: Amazons Windowshop apps' lack of filtering.
Re: What Apple Pay Could Mean for In-App Purchases
#27If you do away with 30% of IAP, then you may as well get rid of the 30% cut in the app buy itself because if IAP is basically free, no one will charge for the app and will instead monetize the app through IAP. This would arguably be a worse experience for customers IMO. And I can't see Apple letting 30% for the app buy go either.
Re: What Apple Pay Could Mean for In-App Purchases
#28"The 30% IAP cut equals billions of dollars in yearly revenue. But being in this commission business is not in Apple’s DNA." I would say it is entirely in Apple's DNA. Apple has aggressively tried to inject themselves between sellers and buyers in multiple markets, even where their value add is unwanted and unnecessary. And I don't fault them at all for that. They're a business and they're doing what businesses do, g…
The 30% as far as I understand is roughly covering the cost of running the app store. I.e. huge revenue but not really much profit.
"According to Apple".
I don't think we've had anyone actually analyze that yet. It's only Apple that's been telling us that they barely cover the running costs. Also that was years ago. I imagine at least some profit grows faster than the costs with more apps in the App Store, more streamlined review policies, and increased profit/app from IAP business models.
Re: What Apple Pay Could Mean for In-App Purchases
#29If you do away with 30% of IAP, then you may as well get rid of the 30% cut in the app buy itself because if IAP is basically free, no one will charge for the app and will instead monetize the app through IAP. This would arguably be a worse experience for customers IMO. And I can't see Apple letting 30% for the app buy go either.
Exactly. That's what confuses me - with this approach, a company could use Apple Pay to circumvent all the app store fees altogether.
Re: What Apple Pay Could Mean for In-App Purchases
#30What I would like to know is if Apple has any plans to make Apple Pay available for the mobile web? Implementation issues aside, I am not too hopeful on that front. Which is really a pity, because it would be so much more useful in a browser context. For one-time purchases I am not downloading an app, and even for shops I use regularly I overwhelmingly prefer the web, because most apps are markedly inferior to their…
I agree it would be useful, but I can also see a myriad of reasons why they'd never do it.