Apple to take 30% Commission on In-APP NFT purchases
That’s so web2
Apple has not been very crypto-friendly at the moment. The tech company has not released any software or in-house web3 initiatives nor is it trying to change its name to be web3 like Meta. instead, just like the company is doing with its now mundane iPhone iterations, it is mostly staying the course when it comes to the apple store and how commissions are handled on the platform.
Apple has a 30% commission that it charges upon in-app purchases and this is an obstacle many startups see as very discouraging when it comes to providing services to apple users. The 30% has always been added on to any in-app purchases made on the Apple store and one user even went as far as to try to justify why that was there.
It would seem the premium is being used for many things such as patent clearing , fraud protection, indemnity, insurance, dunning , tax enforcement and more. Apple checks its apps for fraud as Apple has some restrictions in place so that developers can’t commit fraudulent activity and payment can remain smooth. Dunning is a more serious form of communication ( think threatening calls, letters, and emails) and Apple has to traverse these waters of various countries.
Apple also has to deal with the tax regulations of each country it operates in as well ad managing a content distribution network which includes the need for DRM or Digital Rights Management.
All of these are made to keep the apple ecosystem running as smoothly as it has been but what does that have to do with NFTs?
In a report by The Information it is noted how Apple Store policies squeeze NFT startups by implementing this high percentage of commission.
Digital assets are volatile and applying pricing conventions such as what Apple currently utilizes involves creating what some may call unnecessary obstacles. At this point there is no NFT marketplace that would dare try to conduct any transactions in-app. Marketplaces like Magic Eden only take 2% of each transaction in comparison to what Apple is asking.
Crypto itself has been under a bear market with a substantial drop in the sales volume of NFTs in general all around July sales were around $647 million compared to the $879 million in June, far below the record $4.78 billion of sales volume in January, thus showcasing a month-to-month 26% drop and a decline of unique buyers.
The new iPhone few new tricks, but still no crypto
Initially, marketplace entrepreneurs planned to offset general crypto weakness by creating mobile apps to increase sales, but many feel the move by Apple is just the tech company silently stating its distaste for the technology.
Currently, Apple has not taken a direct vocal stance on crypto but has not offered any way to accept crypto payments and has made NFT purchases less likely to happen at the moment.
Solana Labs introduced its Solana Mobile System earlier this year with plans for a flagship mobile to rival that of Apple. The Flagship phone will also allow for crypto transactions and web3 dApps to be used on the phone as well, for those wanting an ecosystem that is crypto and NFT friendly, the SAGA may just be the phone to take Apple down a peg or two.