Apple’s App Store Is Finally Allowing Third-Party Payment Services—But Only in South Korea

Apple's App Store in South Korea now allows customers to pay through third-party payment services.

The South Korean Telecommunications Business Act was recently revised to require that apps distributed by South Korean app market operators present an alternative payment services option within their apps.

Apple revealed earlier this year that it would abide with a new South Korean law that mandates the company to allow third-party payment providers in App Store apps.

Beginning today, developers can apply to use payment methods other than Apple's in their apps distributed in South Korea's App Store.

Apple's App Store in South Korea

Apple provided further information to its users from South Korea as they abide by the law by allowing other payment portals to be used in purchasing from them.

According to Apple, the StoreKit External Purchase Entitlement is available to be used by developers.

This entitlement grants the ability to give an alternate in-app payment processing option to applications that are only available on the App Store within the borders of South Korea.

If Apple's in-app purchase system is one that developers wish to keep using, they can continue to do so without taking any additional steps.

It is essential for users who are considering making use of this entitlement to be aware of the fact that certain features of the App Store, such as Family Sharing and Ask to Buy, will not be accessible to them if they do so.

This is because Apple cannot validate payments that were made using third-party payment services.

However, the company stated that they will not be able to help the users who have problems with subscription management, purchase history, and refunds if they choose to pay using other parties.

This is because Apple is unable to verify any transactions that take place outside of the protected and private payment system provided by the App Store.

The developers will still have to pay Apple a commission for every sale that is made via an alternative payment method.

However, they will receive a reduction equal to 4% of the commission for each transaction.

In South Korea, there are currently four different qualified payment services. These are: NICE, KCP, Toss, and Inicis.

South Korea's Laws

According to 9To5Mac, the antitrust regulation that was passed by the South Korean regulator in August 2021 was intended to require both Apple and Google to permit developers to utilize third-party payment methods in their respective app stores.

It should come as no surprise that Apple filed an appeal of the verdict; nonetheless, the corporation ultimately decided to comply with the law.

Noise With Apple's App Store

Apple's App Store has been in a series of legal battles and complaints recently. The company's most popular feud today is with Epic Games. Epic Games filed a lawsuit against Apple's App Store, claiming that the company is leveraging its power to have a monopoly in the market.

Usually, Apple does not permit third-party payment services in their system. In addition, the company also acquires high commission rates from the sales of the developers, ranging from 15 to 30%.

Just recently, Apple received a backlash from the SpaceX and Tesla CEO, Elon Musk. Musk implied that the prices in the App Store are significantly higher.

Musk went to Twitter and said, "Apple app store fees are a de facto global tax on the Internet. Epic is right."

The billionaire added that paying in the app store is literally 10 times higher, he added, "Apple's store is like having a 30% tax on the Internet. Definitely not ok."