Paddle Postpones Launch of In-App Purchase Alternative After Apple Wins Reprieve

Payments platform Paddle will be delaying the launch of its alternative in-app payment system for iOS, the company announced today. The delay comes after Apple won a stay allowing it to maintain the current App Store payment setup until after an appeals court examines the original ruling in the Epic v. Apple case.

paddle in app purchase
Back in October, Paddle announced plans to launch a web-based payment system that would serve as an alternative to in-app purchases. Paddle described the system as a "true like-for-like, drop-in replacement" for Apple's in-app purchase mechanism that would let developers collect payments from customers without having to pay Apple's 15 to 30 percent fee.

Paddle planned to charge a 10 percent fee for all transactions under $10, and a 5% plus $0.50 fee on transactions over $10, while also providing app developers with customer data that included email addresses for communicating product news and offers, flexible pricing and subscription options, direct customer service, and more.

When announcing its planned in-app purchase alternative, Paddle said that it would launch on December 7, 2021, two days before Apple would have been required to implement major ‌App Store‌ changes had Apple not received a stay on the original injunction.

Judge Yvonne Gonzalez-Rogers, who oversaw the Epic v. Apple trial, ruled that Apple would be prohibited from restricting developers from including "in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms," paving the way for alternative payment systems.

Rogers gave Apple 90 days to implement the ‌App Store‌ changes, and denied a stay on the ruling when Apple asked. Apple then appealed to the Ninth Circuit Court, which granted a stay until it is able to fully hear the case. It could take several months for the appeals process to play out, and while it does, Apple is not required to make any updates to the ‌App Store‌.

Paddle will not be able to launch any kind of alternative to in-app purchases until the appeals court provides a ruling, and it's possible that the appeals court could rule in Apple's favor, vacating the original decision entirely.

Because Apple was counting on an appeal, the company never announced details on how the ‌App Store‌ changes might be implemented, and it's unknown if Paddle's alternative would have even been allowed.

Apple CEO Tim Cook has made it clear that Apple will continue to collect commission on content sold through the ‌App Store‌ even if developers aren't using the in-app purchase system. "We would have to come up with an alternate way of collecting our commission," Cook said during the Apple v. Epic trial. Cook said that Apple would need to come up with a way to track sales, invoice it, and then chase developers for the money. "It seems like a process that doesn't need to exist," he said.

Apple has also maintained that an alternative purchase system would be inconvenient to customers, requiring them to fill in their credit card information for different apps, which could also lead to fraud issues.

paddle in app purchase demo
Paddle says the testing process for its IAP solution has been completed and the platform is "fully ready to launch," but because of the court delay, it does not have the "clarity on the necessary technical changes and new rules regarding third-party IAP payments" and thus will not be able to debut the product. Paddle plans to "follow the case closely" with plans to be one of the first to launch "when alternative payment methods are allowed."

(Thanks, Eli!)

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Top Rated Comments

ipacers Avatar
33 months ago
If these people think I’m choosing an alternative payment method that gives up more of my data, they’re out of their minds.
Score: 12 Votes (Like | Disagree)
ipacers Avatar
33 months ago
I personally will always choose the Apple payment option for security & privacy options. But in my family, I’m the designated ‘tech support’ person so I’m concerned about the inevitable dark patterns that will trick non tech savvy people into options that lead to more spam etc. Because I’m the one they’re going to call and complain to.
Score: 9 Votes (Like | Disagree)
mjtomlin71 Avatar
33 months ago
Well, it's Apple's platform; hardware, software, service, store. They should be free to run it as they see fit. Both developers and users have other viable choices if they don't like the way Apple's products work.

I agree, options are good and would(could?) be nice if Apple gave developers a choice... but forcing a company to make/create a product they don't want to make is just wrong.
Score: 8 Votes (Like | Disagree)
iosiseasy Avatar
33 months ago
"also providing app developers with customer data" - I'm not overly concerned about privacy but if I have a choice, I choose not to have my customer data shared with developers. I guess I won't be signing up for The Yoga Club.
Score: 8 Votes (Like | Disagree)
mjtomlin71 Avatar
33 months ago

Apple is the rich kid in the park with all the expensive toys. It doesn't let other kids play with these toys.

Sounds so simple on the surface.

The twist in the plot is that the Toys are made in China.

Its astonishing how all the Apple die hard fans defend it while completely ignoring all the shady stuff Apple has been doing over the years. They are actually a far worse corporation than Netflix, Epic and Spotify.

Once you shake hands with the devil, there's no turning back.
Please stop with the "Made in China" crap as if Apple is the only company that has their products assembled in China. 90% of the world's electronics are assembled in China. Why? Most components are manufactured in that part of the world. China also happens to have the labor force to large enough to meet the demand.

What shady stuff? Care to elaborate?
Score: 7 Votes (Like | Disagree)
dannys1 Avatar
33 months ago

1. The reference was not about actually manufacturing in China but the shady deal Tim Cook signed with China 5 years back but was revealed to us recently by a news report.

2. Apple recorded user voices without permission from Hey Siri and sent them to 3rd party for "Analysis".

3. FBI Backdoors

4. CSAM

5. Pegasus (Although they are trying to fix this up but it looks more like headline management).

6. Shipped devices without Charging bricks, claiming it to be pro environment. Claiming people already had charging bricks from old devices, then sent us a usb c to lightning cable that doesn't work with old chargers.


There's a lot more, you just have to be willing to start looking with an open mind that maybe just maybe your favourite company is a profit first shady multi trillion conglomerate.
1. Judging by your last line aren't you the sort of person who doesn't believe "the news" anyway?

2. Didn't happen - was in house, so that's 1 lie you've told.

3. There are none, countless reports of this, another lie you've told.

4. As so you want you approve of the sharing of known child pornography, good to know.

5. I mean....what?

6. Now this really is clutching. Of course it helped profit margins, it also DID do all the things they said to - I mean if you want to go through a list of capitalist companies and point out where they tried to make more money we'd be here all night.

Yes, my favourite tech company is a profit first trillion corporation (it's not a conglomerate) - and? Your point is what? I mean i'm left wing but you appear to be advocating for - anti capitalism here? (though i'm guess in reality you just love a different massive profit first trillion dollar company instead)
Score: 5 Votes (Like | Disagree)