Apple said it will now allow software developers selling through Apple’s app store to use alternative ways to bill customers.
A developer can now charge users for in-app purchases by credit card, bank transfer, wallet, carrier billing or any other alternative payment method reducing or eliminating App Store commission, Bango told investors.
From Bango’s point of view, this gives app developers the chance to use the Bango payment platform; previously, developers would have been forced to have used Apple’s own payments system and pay the US tech giant a commission.
Bango expects greater demand for its Bango Audiences service as purchase behaviour targeting becomes more important for direct marketing to users.
“Choice in payments is a key reason why many leading developers such as Amazon, Spotify and Microsoft already use Bango to collect payments. Many of the thousands of app developers that use Bango Audiences for purchase behaviour targeting to find paying users are already exploring how the Bango payment platform can help them benefit from this new freedom to bill outside of the App Store,” said Paul Larbey, the chief executive officer of Bango.
Apple’s concession came after a class-action lawsuit was brought against Apple against the so-called “Apple Tax” on apps.
Apple settled out of court with a US$100mln settlement to be distributed to App Store developers who have earnt less than US$1mln over the past six years.
Apple has also pledged to maintain for at least another three years its “small business programme”, which halves the App Store commission to 15% for developers who earn less than US$1mln a year. It has also promised to offer more flexibility on pricing within the App Store.