Absorption to Adoption – How the Infamous 30% Apple Cut Affects iOS NFT Apps

Absorption to Adoption – How the Infamous 30% Apple Cut Affects iOS NFT Apps

Apple’s continued push for in-app purchases to sell services remains a trade-off for NFT apps that capitalize on the convenience of iPhone users’ easy in-app purchases and huge user base worldwide.

As previously reported, Apple maintains strict rules regarding nonfungible token (NFT) applications and imposes a 30% commission on the sale of NFTs through in-app purchases.

Enforcing the 30% commission has been a sore point since the Coinbase Wallet app update was blocked by Apple in December 2022. This is because Apple suspended the latest release of the app until Coinbase Wallet disabled the ability to send NFTs through the App.

Apple may have until 2024 to allow third-party app stores on its devices in the European Union in response to the recently drafted Digital Markets Act. This is expected to allow developers to install alternative payment systems in non-Apple apps, but it does not apply to countries outside the EU.

Related: ‘Grotically Overpriced’ – Apple App Store Wants to Cut NFT Sales by 30%

Cointelegraph reached out to Nodle CEO Micha Anthenor Benoliel to explore the implications of NFT apps still working through the Apple Store. Nodle’s app rewards users for participating as nodes in a proprietary decentralized IoT network, and also allows users to create NFTs from their smartphones.

Benoliel notes that Apple has clear guidelines forcing NFT apps to use in-app purchases to sell services similar to NFT minting to prevent users from buying NFT from mobile apps on and inside the Apple App Store outside. in app purchase feature:

“It may take some time for them to fully understand the implications of Web3’s principles, but for now it appears that they are trying to protect their business and their customers by following these guidelines.”

This is in clear contrast to Android, where app developers are free to experiment and are not forced to use the Play Store’s in-app purchase mechanism to make or sell NFTs. Still, Benoliel believes there are countless benefits that offset the trade-offs in Apple’s current contract terms.

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He notes that iOS has a leading position in the US mobile market, while its in-app purchases remove payment friction for iPhone users:

“The company has gone to great lengths to simplify the purchase process and make it easier for developers to support transactions without handling sensitive credit card information.”

The App Store also provides a central service that manages various currencies and exchange rates that developers would need to manage when implementing a credit card payment solution.

Related: Robinhood Wallet Launches on iOS with Android Support

Nodle aims to provide creators with infrastructure so that app users can create unique creations. In order to provide this service to iOS users under Apple’s current terms, the platform has had to pass costs on to users:

“There is a catch. Apple charges 30% of the selling price for beating the NFT. Nodle includes this fee in the price to customers.”

Nodle’s NFT minting process allows the user to use camera photos or images from their gallery before paying the minting costs with an in-app purchase from Apple. The “Minting as a Service” component includes a central service that receives and verifies the images before minting the NFT using the Polkadot NFT pallet after payment is confirmed.

An NFT minted through the Nodle mobile app. Source: Nodle

Benoliel told Cointelegraph that Apple could benefit in the long term from the free exchange and trading of NFTs in apps, which could encourage users to choose alternative solutions:

“When we read about incoming EU laws forcing Apple to allow alternative app stores and apps without going through the App Store, you might wonder if this might not happen in the US soon as well .”

Up until that point, Benoliel believes that NFT app developers still have a valid argument to consider iOS support, citing the convenience of the in-app purchase feature for transactions. The huge user base also represents a “valuable opportunity” for developers to reach a wide audience of potential users.

Cryptocurrency wallet apps also struggle with specific requirements to appear on the Apple App Store. Decentralized exchange Uniswap planned to launch its iOS app in December 2022, but Apple refused to give it permission.

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