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Patreon forced to adopt Apple's in-app purchase system

Thursday 15 August 2024 14:29 CET | News

Apple has mandated that Patreon must transition to using the iOS in-app purchase system by November 2024 or face removal from the App Store.

 

This change will have significant implications for creators using the Patreon platform. Patreon, a platform designed to enable creators to earn income directly from their supporters, will now be required to adopt Apple’s in-app purchase system for all iOS transactions. This system differs from Patreon’s existing setup, particularly in its lack of flexibility for creators.

Apple's requirement has two main consequences:

  1. A 30% App Store fee will be applied to all new memberships purchased through the Patreon iOS app, as well as any purchases made in a creator's Patreon shop.

  2. Creators currently using first-of-the-month or per-creation billing models will need to switch to subscription billing, the only model supported by Apple’s in-app purchase system, in order to continue earning through the iOS app.

It is important to note that existing memberships will not be affected by Apple’s fee; the fee will only apply to new memberships purchased through the iOS app starting in November 2024.

 

To help creators mitigate the impact of this fee, Patreon has developed an optional tool that can automatically increase prices within the iOS app to offset Apple's 30% fee. Creators also have the option to keep their prices unchanged, although this will result in reduced earnings on iOS transactions. These changes will not affect prices on other platforms, such as Patreon’s web or Android app.

Further implications

Additionally, Patreon will begin migrating all creators to subscription billing by November 2025, in response to Apple’s requirements. Creators currently using first-of-the-month or per-creation billing models will be automatically switched to subscription billing in November 2024 unless they choose to delay the migration until the November 2025 deadline. However, if the migration is delayed, new memberships in the iOS app will be disabled until the switch to subscription billing is made.

Patreon is working to support creators through this transition, offering resources such as how-to videos, FAQs, and personalized support to ensure a smooth migration to the new billing system. The company will continue to gather feedback and provide updates to assist creators during this process.


Source: Link


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Keywords: on-demand apps, transactions , interchange fee, subscription payments
Categories: Payments & Commerce
Companies: Apple
Countries: World
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Payments & Commerce

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