App Store: alternative means of payment implemented in South Korea

Apple released several technical details about opening the App Store to external payments in South Korea. Last year, the country passed an amendment requiring the App Store to support alternative payment methods. As with some apps in the Netherlands, the system will go through a dedicated API. Developers can now make a request from Apple for access.

This interface, called “StoreKit External Purchase Entitlement” (“StoreKit External Purchase Entitlement”) will therefore allow users to offer another means of payment for in-app purchases. Once the file has been accepted by Apple, developers wishing to use it will have to activate the right in the Xcode project, implement the API and submit a second binary of the app reserved for the South Korean App Store.

Apps will need to notify users that their purchases will not go through the App Store using a sign. Four South Korean payment service providers are licensed by Apple, namely KCP, Inicis, Toss and NICE. Apple notes that it is possible to work with other providers by sending a request.

In its data sheet, Apple reminds that the use of this API will make certain functions unavailable, such as Request Purchase Authorization or certain aspects of Family Sharing because Apple cannot validate payments taking place outside its system. Logically, the company explains that it will not be able to help the user in the event of a glitch, such as for reimbursement requests or for the management of subscriptions.

If payments go through an external platform, this change will not remove the “App Store tax”: publishers will still have to pay a commission to Apple, which drops from 30% normally to 26% here. Finally, Apple reminds that developers who do not want to open their app to other means of payment have nothing to do with this new legislation.

Note that there are some differences between what Apple offers for Korea and for the Netherlands (another country that has requested the opening of the App Store to external payments). There, developers no longer need to provide a second binary, while the tax charged by Apple is 27% on each purchase. In addition, the opening of the App Store is reserved for dating applications.