In the world of digital transactions, it's important to understand the difference between two commonly used terms: In-App Purchase and Apple Pay. While both serve the purpose of facilitating payments within the iOS apps, they have distinct functionalities and advantages. Understanding these differences can help you choose the most suitable payment method for your app.
In-app purchases are extra content or subscriptions that you can buy in apps on your iOS devices. Apple Pay or any 3rd party payment gateways can be used to sell physical goods such as groceries, clothing, and appliances. You are required to use Apple’s In-App Purchase to sell virtual goods such as premium content for your app and subscriptions for digital content. Specifically, Apple’s developer terms require that the In-App Purchase must be used for digital “content, functionality, or services” such as premium features or credits. When your users register or buy any content through Apple’s In-App Purchase, Apple will deduct 30% of the payment made by your users and will give you the rest 70%.
|Note: Once your app becomes a year old in the iTunes App Store with an in-app purchase option, Apple will reduce the revenue share percentage from 30% to 15%.
Apple Pay is a digital wallet service developed by Apple that allows users to make secure payments both in-store and online. It allows users to make payments using their iOS devices such as iPhone or Apple Watch in physical stores or online platforms.
It uses Near Field Communication (NFC) technology for contactless payments in physical stores and offers a convenient way for users to make purchases without having to manually enter their payment details each time.
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