What Apple Pay Could Mean for In-App Purchases • Hacker News Board

Re: What Apple Pay Could Mean for In-App Purchases

#31

Post by ThomPete » Wed, Sep 10, 2014, 4:20 PM UTC

personZ wrote: post #24

ThomPete wrote: post #20

Earlier quoted context omitted.

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 busine…

I was talking about the app store. Sorry if that was unclear.

Re: What Apple Pay Could Mean for In-App Purchases

#32

Post by Woozey » Wed, Sep 10, 2014, 4:44 PM UTC

julien_c wrote: post #18

Woozey wrote: post #16

Where does it say that in app delivered digital content will be allowed to be purchased by Apple Pay?

Nowhere, and it probably won't.

That's what I thought. The article does not make that clear at all. So the hypothetical payment model suggested is directly against the guidelines of what currently exists. A model that explicitly requires in-app digital content and subscriptions to be paid through IAP. While you can use external payment in app for other types of payment e.g. Hailo. There is no reason at all for Apple to deviate from this model because of Apple Pay. What are the assumptions in this article based on? I really don't know why the author is suggesting the above - and that's without going into the financial implications.

Re: What Apple Pay Could Mean for In-App Purchases

#33

Post by calvinbhai » Wed, Sep 10, 2014, 5:06 PM UTC

go to this link https://developer.apple.com/apple-pay/Getting-Started-with-A...

scroll down.

It says clearly: Apple does not charge users, merchants or developers to use Apple Pay for payments. Your credit and debit transactions will continue to be handled by the payment networks.

Re: What Apple Pay Could Mean for In-App Purchases

#34

Post by amatheus » Wed, Sep 10, 2014, 5:08 PM UTC

personZ wrote: post #24

ThomPete wrote: post #20

Earlier quoted context omitted.

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 busine…

The app store has free apps too, it could be said the paid apps are subsidizing the free ones.

Re: What Apple Pay Could Mean for In-App Purchases

#35

Post by mstolpm » Wed, Sep 10, 2014, 5:23 PM UTC

I don't think Apple Pay will have any implications on IAP in the near future. Apple guidelines clearly show that Apple Pay is for physical goods and services, IAP for digital stuff:

"It is important to understand the difference between Apple Pay and In-App Purchase. Use Apple Pay to sell physical goods such as groceries, clothing, and appliances. Also use Apple Pay for services such as club memberships, hotel reservations, and tickets for events. On the other hand, use In-App Purchase to sell virtual goods such as premium content for your app, and subscriptions for digital content." Source: https://developer.apple.com/apple-pay/Getting-Started-with-A...

Re: What Apple Pay Could Mean for In-App Purchases

#36

Post by nemothekid » Wed, Sep 10, 2014, 5:26 PM UTC

Someone1234 wrote: post #21

> 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.

Security. Given the recent attacks on retailers, it seems retailers aren't adept in making sure their customers information is protected.

Re: What Apple Pay Could Mean for In-App Purchases

#37

Post by Someone1234 » Wed, Sep 10, 2014, 5:46 PM UTC

nemothekid wrote: post #36

Someone1234 wrote: post #21

> 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.

Security. Given the recent attacks on retailers, it seems retailers aren't adept in making sure their customers information is protected.

He said "publishers" not retailers.

Re: What Apple Pay Could Mean for In-App Purchases

#38

Post by chmars » Wed, Sep 10, 2014, 5:47 PM UTC

> According to Bloomberg, Apple is charging banks. > But that is coming from the fees paid to banks by > merchants, so the thesis about this being free for > both merchants and customers still stands.

Apple is charging the banks and the banks are charging the merchants – so it is not free … and of the Apple _and_ bank fees are of course part of the customer price.

Re: What Apple Pay Could Mean for In-App Purchases

#39

Post by chrischen » Wed, Sep 10, 2014, 6:09 PM UTC

amatheus wrote: post #34

personZ wrote: post #24

Earlier quoted context omitted.

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 busine…

The app store has free apps too, it could be said the paid apps are subsidizing the free ones.

Subsidizing the bandwidth costs? Because the free app developers surely don't see any of that 30% cut app charges other apps.

Re: What Apple Pay Could Mean for In-App Purchases

#40

Post by logician76 » Wed, Sep 10, 2014, 8:13 PM UTC

EGreg wrote: post #17

I see ApplePay and Google Wallet as the Virtualization of payment, basically turning your credit card accounts into electronic accounts with per-device and per-payment tokens. Which means that security will be a lot easier, numbers can't get stolen, and the merchant now doesn't AUTOMATICALLY get your info from your credit card, while retaining the ability to track you (probably) as long as the Payment Processors allo…

I agree that this is the most interesting thing to watch for, whether apps will go with ApplePay or IAP. However it seems that credit card transactions also have a fixed per transaction fee of 19 cents or higher, not sure what these are for ApplePay yet, but that could factor in when IAP are just 1 dollar amounts.