Apple Will Allow Third-Party Payments In South Korea

Apple users know how exasperating it is to pay for an application on App Store, as you can only pay through the Apple payment gateway. But, this is not the case anymore, as Apple is letting app developers deploy third-party gateways. The option is available for the South Korean App Store only for now.

It is excellent news for developers, as they can accept in-app payments and won’t have to pay a 30% commission to Apple.

However, the tech giant will still collect a commission of 26% for payments made through third-party systems. Developers will have to report sales to Apple monthly and then pay the commission. The new model, despite needing less from Apple, gives it an equally big cut.

Apple third-party payments in Korea

This initiative does come with a catch. If developers choose to introduce their payment system, they won’t be able to use some features of the App Store, like ‘Family Sharing’ and ‘Ask to Buy.’ The company has restricted these features because it can’t authenticate payments outside of the App Store’s secure payment system.

Similarly, the price of these applications could increase for users as there is no access to Family Sharing. Apple warned that third-party payment gateways could increase the risk associated with the payments. The company will not be able to assist users with purchase history, management, refund, and any other issue that may arise from digital goods.

South Korea Amends Laws

The option to include external payment methods came to the South Korean App Store after the laws in the country were amended. In 2021, South Korea amended its Telecommunications Business Act.

The government banned app stores from forcing developers to use the first-party payment systems, so many social media platforms had to comply.

Google immediately obeyed the country’s amended laws, but Apple has merely followed it. The company has now confirmed that developers can use the StoreKit External Purchase Entitlement to develop third-party payment pathways, but this is only available to apps exclusively available in South Korea.

If an application is internationally available, developers must submit a distinct app binary ‘that is distributed solely on the App Store in Korea.’