[mikehearn]

My 100% selfish take on this is that Apple's in-app payment flow is a pretty incredible user experience (double-tap a button + FaceID scan, and you're done), whereas being directed to a website and having to manually enter card details is a legitimate pain. I haven't pulled my credit card out of my wallet to enter my details on a phone in a long time. Haven't had to type my billing address, haven't had to find my CVC number. It's been nice!

I'm sure Apple is very pleased with the profit margins they get on in-app payments, but I'm equally certain that Apple's desire to keep people using their payment system is just as much about maintaining a great user experience for users.

Obviously the flip side is that some companies - Netflix! - then decide just not to offer payment in-app at all. That's also bad! But I don't know how to compromise on allowing apps to direct users to payment systems outside the app store without opening the floodgates to a million different payment experiences, which I (again, selfishly) would love to avoid.

[yyyk]

It's easy to offer the same user experience with other payment processors. It's even possible with websites. All that's needed is for Apple to export the relevant APIs and support the needed APIs in Safari.

Then again, given that other payment processors have more experience, I'm not sure their UX is worse. There's more to UX than Face ID (chargebacks, dispute resolution, being able to move your subscription to Android should you desire it, etc.).

Therefore the issue is Apple getting monopoly rent (which you pay for indirectly), not UX. Your selfish interest should ask Apple to open up.

[X-Istence]

Apple does offer Apple Pay on websites and it can easily be integrated with a payment processor. I use it for buying stuff on Apple Pay enabled sites all the time.

[sizzle]

Why not offer a discount without 30% cut for Apple credit card users and force streamlined UX on all apps with this payment method they can control the checkout experience.

[jollybean]

"but I'm equally certain that Apple's desire to keep people using their payment system is just as much about maintaining a great user experience for users"

It's absolutely and fundamentally first about the platform-monopoly and control.

Apple has a considerable number of other 'bad users experiences' to point at to suggest that this issue, while might be a part of their legit product strategy, is way second tier to their control of the distribution.

Finally, there's also a fairly heavy 'bad user experience' in blocking from doing the things the want to do.

The answer to your question is actually in the economics:

Apple should be able to charge a premium to using their 'great experience' commensurate with the likelihood that vendors will use it, given that premium.

With a 15%/30% cut, vendors will not use the service.

With an 8% cut (assuming they'd have to pay Stripe 4% or whatever), then it may very well be worth it for vendors.

i.e. if the 'Apple Checkout' were forced to compete as an actual produced (even with it's entrenched position in the platform), the profits would be a measure of the value at least on some level.

[mikepurvis]

I mean, the obvious answer here is that Apple needs to offer companies a reasonable revenue split (like, 5% or something) for these recurring subscription scenarios where it’s obvious Apple did nothing to drum up the business and is purely functioning as a (very convenient, admittedly) credit card processor.

[mikehearn]

You say "Apple did nothing", but the only way a company would be paying a 30% commission to Apple is if the user's initial sign-up came through their platform.

In that situation, maybe the user would have eventually signed up through a different platform, and the company could have been directly paid 100% of the price. But it's also possible that the user would simply never have signed up, in which case Apple's 30% cut would look like a steal compared to the alternative (receiving nothing).

[yyyk]

The same 'logic' could justify a 95% cut.

[thies226j]

No it wouldn’t, because cost would probably exceed revenue in that case.

[ksec]

>Apple is if the user's initial sign-up came through their platform

Which is an admission that Apple is rent seeking.

[simondotau]

What about transactions that weren't made directly with a credit card, but rather with an Apple Store gift card purchased from a physical retailer? Possibly during a 20% off sale? Even if you elide any such discounting, Apple's transactional cost is going to be far, far higher than 5%.

I doubt there's any publicly available hard data around the costs of running the gift card ecosystem, but a number between 15 and 35 percent would not surprise me at all.

[mikepurvis]

On the contrary, it's super profitable since loads of them are never spent or only partially spent, to the tune of $3B/yr:

https://www.cnbc.com/2020/05/24/how-amazon-and-walmart-make-...

[ksec]

>Apple's desire to keep people using their payment system is just as much about maintaining a great user experience for users.

Steve Jobs Apple, Yes. Modern Apple that is no longer the case.

It is very clear from 2016 when they announced their focus on services revenue. Every little changes, being implemented and enforced YoY was all to push for that double services revenue target.

If you have followed Apple long enough you start seeing all these changes. From Apple Retail focusing on AppleCare+ Target, retail staff having their KPI to include Apple Services Revenue Push, as well as enforcing rules where it wasn't previously enforced on App Store.

[nhoughto]

yep agreed, there has definitely been a big shift in priorities. When iPhones had dramatic hardware improvements every year (remember the S phones, 4s/5s etc, thats how fast things were moving) revenue was ticking up from genuine innovation. Now people are mostly happy with their phones are keeping them longer, how do they maintain the growth? squeezing more out of what they've got, which is services revenue, which is naturally exploiting their monopoly more and more until someone stops them.

[crossroadsguy]

I am really convinced their decision to have glass backs in iPhones has nothing really to do with wireless charging but the hope that it keeps breaking and people will keep repairing it.

The charger thing just sealed it how low they can stoop to make people pay for things customers shouldn’t in the first place.

But users are equally responsible. They literally encourage it by continuing to buy into the walled garden.

[jollybean]

I'm sorry to have to indicate it was not 'Steve Jobs'.

The economics of the situation are clear and massive, and they outweigh any 'usability' concerns.

Apple has tons of usability issues, they're not going to trade something marginal for 10's of billions of dollars in revenue opportunity.

This is a straight up realpolitik war over platform control.

[asiachick]

As someone who straddles Japan and the USA, Apple's system sucks. To update my MUFG Japanese bank app I need to be on the Apple Japanese App store. To update my Capital One app I need to be on the USA store. Switching stores cancels all subscriptions.

I'd prefer a system that allowed subscription to last and one that didn't require switching stores but I'm not allowed to use another store

[narism]

I think this has more just the consequences of international law (particularly the US being all up in your business via FATCA to the point of Japanese banks not wanting to even bother if you are a US citizen). It seems better than the Android situation where you either have to wait a _year_ between switching countries on your account or find the APK (y’know, for your _banking_ app) on some shady site.

[asiachick]

I doubt this has anything do whatsoever with laws. If it laws then something would prevent me from installing software from other countries on my computer.

[narism]

Not a direct result, more like the banks don’t want/care about international customers (due to the laws), so they don’t bother publishing to different regions of the App Store.

[mdoms]

If it's such a value-add then you won't mind if users who are fine with the browser-based solution are offered a lower price to compensate for Apple's cut, then?