iOS In-App Purchases (IAP) and "external" services advice - ios

I'm about to develop an app (for iOS and Android) that allows users to create a collection of digital content from their phone (e.g. some videos and pictures), and send that content to other users who can consume that collection on the same iOS/Android app. I'd like to bill users for sending a collection, because this process involves uploading and processing the collection to the cloud (which I pay for) and the recipient's app downloading it again (causing traffic costs). Note that I don't want to charge any money from the recipient!
The way I see it, producing such an iOS app is not possible (because Apple will reject it, see App store guidelines and In App Purchase Guidelines) for the following reasons:
Setting a fixed price for the app ("paid app") is not reasonable, because I want to charge the user each time he sends a collection, so IAP (In-App-Purchases) would be more reasonable
The IAP-logic/flow would be that a user can create the collection in the app for free and then, when he clicks the "send collection" button, he is asked to approve a purchase, in return he gets the link that he can send to his friend. The logic would essentially be the same in the Android app, using Google's "In App Billing"
Such an app could be rejected by Apple because of rule "11.3. Apps using IAP to purchase physical goods or goods and services used outside of the App will be rejected" - because the user essentially paid for hosting the collection, and that collection can be used outside of the app (by an Android app user for example)
OTOH it's also impossible to use external means of payment. For example, I was thinking about forcing users to first create an account on my website, where they can pay for a voucher (with Paypal, say) that enables users to send collections. They'd first need to log into their account in the iOS app and then they might see a warning that they have not yet purchased (or no longer have) any credits for sending a collection. The IAP guidelines forbid me to directly link to my website with a note saying that users can pay for additional credits by other means. When Apple engineers sees that message during review (assuming they aren't putting very bright people in charge) the app might be rejected, too. Even if it were not, this work flow is very uncomfortable for the user, I'd prefer IAP as this also makes accounting (taxes and earnings for my company) a lot easier.
I'd like to get your opinions on this. Please note that I might be "too hard" on myself. As a matter of fact, I do know apps that have been approved to the store that do exactly that, see e.g. here and here. Maybe they have been approved because paragraph 11.3 actually just forbids the ability to purchase the functionality of uploading (converting a collection to a link) and then use this functionality somewhere else - effectively that would mean "to buy credits for an external service" mechanism. My app wouldn't do this. You'd have to do the purchase and the upload/convert-to-link functionality would only work on that device where you did the purchase.
Any thoughts?

I have similar experience with an app i worked on. It was a GPS device showing tracking data in the app. The device uses cellular data to send tracking information and we need to collect a fee to pay the SIM provider which is an external service. We did this using Stripe payment but Apple rejected the app and asked to implement In-App purchase. Because we were blocking the user and asking to pay in the app that looks like we are asking payment for app digital content.
Based on my experience, to answer your question :
Yes you have to use In-App purchase and it can be Consumable type. When user try to send a collection, show a consumable purchase type. Keep track of the purchase in the server using purchase receipt, collection id etc.
Even though the amount collected is used for hosting and web traffic, you can term this as a service fee for managing/sending the collection. Behind the seen, you use this fee to pay your hosting provider or anyone else, that's up to you. Apple won't reject the app for this reason. Because you are charging a fee for digital service you are provided in the app. In apple guidelines, external physical service means, for example taxi charge in Uber, shopping goods price in amazon etc.

This is very common mistake developer often doing while choosing the payment options for any Payment related feature into application. Specifically in iOS there are new rules defined by the Apple for choosing the payment model for your application.
Here are some important points :
If your application having some points system or coins system for which you needs user to pay for than you must use the inApp purchase. And inApp purchase must be of type Consumable. So it will be purchasable multiple times
If your application offering any pro features or facility inside the application you must use inApp purchase. Type will be non consumable. (Note : For Non Consumable inApp purchase you must give Restore Purchase option into your application other wise your application will get rejected.)
If your application is providing any feature or any internal content access for limited time than you must use the subscription based inApp Purchase.
If your application is selling any physical goods than you must use any third party payment options. You can't use inApp purchase for it.
If your application is selling external services or any donation related feature then you can't use inApp purchase for it. This will be a complicated case & in this case according to the apple guidelines you should use the Payment gate way with Webview redirection. So the user will do the payment from the Webview redirected component.
Hope this helps to everyone.

Related

Is there a way to avoid In-App (30%) fee for any purchases in iOS?

I have an app which has some purchase option. However, I don't want to make it through the app itself. For that, I already have a website for the purchase.
So can I create a redirection page from my app to the respective webpage?
Will my app get rejected?
or is there a better solution?
It depends on what you are selling, if you are offering "Physical Goods and Services Outside of the App" you cannot use IAP and must use something else as described in the App Store Review Guidelines
3.1.5 (a) Physical Goods and Services Outside of the App: If your app enables people to purchase goods or services that will be consumed outside of the app, you must use purchase methods other than in-app purchase to collect those payments, such as Apple Pay or traditional credit card entry.
If not then you must use IAP and will be charged a 30% fee. However, if you are offering subscriptions this rate will drop down to 15% for users who have been subscribed for over 1 year. Check out Offering Subscriptions for more info if you are interested.
There isn’t any,
According to Apple’s official guidelines
If you want to unlock features or functionality within your app, (by way of example: subscriptions, in-game currencies, game levels, access to premium content, or unlocking a full version), you must use in-app purchase. Apps may use in-app purchase currencies to enable customers to “tip” digital content providers in the app. Apps and their metadata may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.
You must use in-app purchases and Apple’s official API’s, if it’s not a physical item
Otherwise your app will be rejected
if you want to sell tokens/credits/gold coins/gems or whatever as consumables in a game they also must be through In App Purchase. Meanwhile for Physical elements that we brought from any e commence app that must should go through your requirement.
hope this work
for more info refer this link blog post describing it
Firstly, let me answer your question based on my experience(bad :( ) with Apple
So can I create a redirection page from my app to the respective webpage? - NO
Will my app get rejected? - YES
or is there a better solution? - Depend on types of app.
The In-App guidelines are recently updated with few more changes so it's depends on what kind of feature you are subscribing. For example:
3.1.4 Hardware-Specific Content: In limited circumstances, such as when features are dependent upon specific hardware to function, the
app may unlock that functionality without using in-app purchase (e.g.
an astronomy app that adds features when synced with a telescope).
To be honest, DON'T trust these exceptions and build your app based on this. In our case, app works exclusively based on a connected physical device device. After rejection from Apple, we appealed with this exception but we didn't hear from Apple for more than a month..!
Using subscription through website
Many thinks that they can get away In-app purchase by offering subscription through website and removing t from app. But Apple will still reject your app and confirmed with Apple team. If you are thinking about Spotify and Netflix cases, there is a category of apps it's only permitted called "Reader app". Please refer 3.1.3(a) of Apple guidelines.

iOS App allowing news users to sign up for free accounts

We are a website based service. We do not charge for accounts. We charge for services the user selects to do (such as exporting data). We collect money through our website and store that as credits in our system.
We have built a free app app and have been updating the app.
We would like to provide a user sign up in our app. We are having troubles figuring out if Apple will take issue with that. We understand if we sign up a new account in the app, Apple will take a 30% cut (ala Spotify).
The question is how do they handle free accounts?
EDIT:
Our app currently lets the user charge for services against their current credit balance (such as exporting a file) and have not had an issue with that in 4 years we have been doing it.
EDIT 2:
At one point, they did reject our App for hot linking to our website. That was 3 years ago and I forget if it was because they could create a new accout or could add credits to their account. I can't find a way to go back and look up the rejection notification.
Accounts are unrelated to purchases. Purchases and accounts are often used together, but this is a convenience and not strict requirement.
In your case:
The user may access the app with an account.
No payment is asked for the account.
Through this account, the user may receive content which has been paid for by credit card.
Credit card details have been submitted through your web site.
This is ok, as long as you do not take credit card payments in the app, or provide any buttons or links to credit card payments, from in the app.
According to the App Store Review guide.
3.1.1 In-App Purchase: If you want to unlock features or functionality within your app, (by way of example: subscriptions, in-game
currencies, game levels, access to premium content, or unlocking a
full version), you must use in-app purchase. Apps may not include
buttons, external links, or other calls to action that direct
customers to purchasing mechanisms other than IAP. Any credits or
in-game currencies purchased via IAP must be consumed within the app
and may not expire, and you should make sure you have a restore
mechanism for any restorable in-app purchases. Please remember to
assign the correct purchasability type or your app will be rejected.
Apps should not directly or indirectly enable gifting of IAP content,
features, or consumable items to others. Apps distributed via the Mac
App Store may host plug-ins or extensions that are enabled with
mechanisms other than the App Store.
And
3.1.3 Content-based “Reader” Apps: Apps may allow a user to access previously purchased content or subscriptions (specifically:
magazines, newspapers, books, audio, music, video, access to
professional databases, VoIP, cloud storage, and approved services
such as educational apps that manage student grades and schedules),
provided the app does not direct users to a purchasing mechanism other
than IAP.
In other words, users may access content that has been paid for outside of the app.
If the user is directed by the app to pay for something, then you may not use external payment services, and you must use In App Purchase.
So, hot linking to your web site from your app to accept payments is not allowed, whereas downloading content which has already been paid for through your web site outside of the app is allowed.
If in doubt, contact Apple directly through their support form, or the Apple developer program technical support.

what is the apple review guideline for money wallet apps like paytm?

I have developed an app like money wallet (e.g. paytm), where user can request money to each other and transfer money to each others account. with every transaction of user, Admin will get some fixed percent commission.
As app is for one small town only,right now user will have to manually contact admin to load money in his wallet or to withdraw it.
I want to submit my app on iTunes store. I know to use any digital content, services, unlock features we need to use In App Purchase. And for any physical good we need to go with any other third party payment gateway.
So I am confused that will apple approve my app or not. Please help.
Thanks,
First, you never know if Apple will approve or not. The only way to know for sure is to submit and see what happens.
Your description of features sounds like you are probably taking the correct approach.
Its important to use In app purchase for unlocking content/features:
Apps that unlock or enable additional features or functionality
with mechanisms other than the App Store will be rejected
And equally for real world purchases to use something else:
Apps using IAP to purchase physical goods or goods and services used
outside of the App will be rejected
The complete guidelines can be found here https://developer.apple.com/app-store/review/guidelines/#purchasing-currencies
And again, its Apples own words:
This is a living document, and new Apps presenting new questions may
result in new rules at any time. Perhaps your App will trigger this.
I tried to submit using paytm integration sdk, and after that my app got rejected
following is reply from App Store
Guideline 3.1.1 - Business - Payments - In-App Purchase
We noticed that your app or its metadata enables the purchase of content, services, or functionality in the app by means other than the in-app purchase API, which is not appropriate for the App Store.
Next Steps
While the payment system that you have included may conduct the transaction outside of the app, if the purchasable content, functionality, or services are intended to be used in the app, they must be purchased using in-app purchase, within the app - unless it is of the type referenced in guideline 3.1.3 of the App Store Review Guidelines.
Please see attached screenshots for details.
Since your App Store Connect status is Rejected, a new binary will be required.

iOS app got rejected because we must use IAP for payments

My iOS app got rejected because we charge users with Stripe's payment service, and Apple requires us to use IAPs for payments.
We deleted the Stripe reload balance module from the app. Now the only way to recharge it is for the user to go to the website and make the payment. Does this solution work or does the app still have to use IAPs?
Apple has explicitly requested any submission to go through their iAP for any payment. Your rejection is expected and normal. You have two choices, asking a user to pay through iAP or accept the payment on your website. Both works, but you can't and can't explicitly ask your user to pay you directly.
Let's take Dropbox as an example. You can upgrade Dropbox account on their website. It works. But Dropbox isn't allowed to encourage you to do the upgrade in the app itself (unless the payment goes through Apple). That is, you can't do something like a button in the app that takes you to the payment form on your website. If a user knows how and where to do it on the Dropbox website without being told to do in the app, good, Apple doesn't take that 30% commission.
Unless your service is popular, most users wouldn't be bothered to goto your website and give you their credit card number for a purchase. You should consider just giving the 30% commission to Apple, you'll get more sales.
You are required by Apple to use IAP, and can only use IAP, if you are using the purchase to unlock code in the app. You may use other payment systems only if you are selling real world goods and services or, in certain circumstances, files that are being downloaded from your servers. If you use other payment systems they must be used outside of the app. This is explained in the app review guidelines, section 11.
Note that requiring the use of IAP for sales of code distributed by Apple may not be an issue under anti-trust laws. But in any event, if the "market" is smartphones then Apple is not a monopoly player since their market share is limited.

How to implement a licensing mechanism when purchasing an App Store application if the license system is on our own server?

I am looking to start selling an app on the Apple app store however currently the app uses our own servers to generate a license to the customer once they have purchased it. How can our existing licensing system which uses our own servers be implemented if a customer purchases the app from the App Store instead?
The application license will be a yearly renewable one. Therefore, so far, from what I have read, the app on the App Store could just come with an auto-renewal option (opt-out of course) so that would take care of the subscription cycle but how can our own server issue the customer the one year license which they could then renew from iTunes using the auto-renew function of the App Store?
I am sorry if this is not clear but it would go like this:
Customer downloads application from app store with a one year auto
renewal subscription.
Customer pays.
The app store verifies the
payment.
Once payment is verified it contacts our server to create a
license for that purchase and for one year.
That license is sent back
from our server to the purchased app to unlock the subscription.
Please correct me if my understanding on how this works is wrong but if anyone can point me in the right direction or give examples of how an application on the app store can successfully issue licenses from their own server then I would be very grateful.
As an example, look at "Aviation Exam". They let you buy subscriptions on-device as in-app purchases, or on their own website. In each case the details are synced to a user's account on their own server, so the same exam can be used from any device.
Look at the Apple documentation for how in-app purchase subscriptions work on iOS. Then your app can send details of a purchase to your servers, and download further information.
Edit; after discussion in comments:
If you want payment to go via Apple then it has to be via App Purchase or In-App Purchase. In-App Purchase specifically supports the idea of buying a subscription for a limited time. This is explained at the second link above.
If you want the user to create an account on your server you can either have a page in the app for them to input their details, or you can bring up a web page served from your website. Either way, the info can go to your server and it can create an account.
The key thing is, if payment went via Apple then inside the app is the only place you know this. The app can send this info to your server. You need some common identifier (i.e. a user-name) that is known to your server and to your user, then the user keys it in to your app and it can all be matched up.
There is nothing complicated here, to a decent software developer. All they need is an existence proof such as I gave at the top, and they can figure out how to link the info together.
Edit 2
Some tutorials for in-app purchase listed at: In-App purchase server model
Lots of low-level detail at: Verify receipt for in App purchase
If you prefer to handle payment yourself, not via Apple, then the situation is very different. Now, your own systems have to keep track of what has been bought, when subscriptions run out, etc. To begin with, the app won't know this at all. However, once you identify the user by having them enter credentials (username/password), you can fetch all the details from your back-end system to the app and proceed as above. Again, this is all visible in the example I gave at the beginning, which supports both Apple and non-Apple payments.
One thing to note: if you handle payment yourself then Apple isn't getting its 30% cut, which is the usual App Store commission, so they may not like this. The guidelines say:
11.1 Apps that unlock or enable additional features or functionality with mechanisms other than the App Store will be rejected
11.13 Apps that link to external mechanisms for purchases or subscriptions to be used in the App, such as a "buy" button that goes to a web site to purchase a digital book, will be rejected
That's pretty clear-cut, but since there are apps that rely on subscriptions or content purchased elsewhere, they don't seem to follow these rules in every case. Even the Amazon Kindle app was allowed back, once they took the 'buy' button off.

Resources