Google Play/App Store in-app purchase policies

Question

I heard from someone that on App Store, everything you sell or anything the user buys, Apple must have their 30% on it. That would imply that even if you open a web page within the app and accept a donation, Apple must have its percentage. Otherwise you would have to redirect the user to make this donation outside of the app - for instance, calling the browser.

So, if it's true, I wanted to know if Google holds the same policies. I couldn't find this specific answer in the documentation, just info about in-app purchase (but I'm considering that scenario a purchase within the app, but not IN the app itself (sorry if it sounds confusing).

Taking Groupon as example. If you buy a coupon, is it an "in-app purchase"? I don't believe Google would take 30% on everything you buy there, so I just wanted to make sure it is according to their rules.

The app I'm working on will have both donation and coupon purchase from sponsors (Walgreens, etc). Is it ok if I do this through a WebView, or would I have to actually call the browser?

Sorry if my concept of "in-app purchase" is blurred.

Any information on this topic is much appreciated.

EDIT:

From my understanding, In-App Purchase (for both Google and Apple) is like an API that you use to process these payments. What I find confusing is that, for instance, in the Apple's In-App Purchase Guidelines: So, does it mean I cannot use Apple's In-App Purchase to sell my book (but could open my e-commerce site in the app and sell it), or I cannot sell my book at all inside my app? I know it may sound like a dumb question, but it doesn't seem so clear to me.

Shirk

Answer 1

The standard 30% transaction fee applies to in-app transactions on Google Play and goes to the distribution partner and operating fees.

According to the Google Play Developer Program Policies:

In-app purchases:

• Developers offering virtual goods or currencies within a game downloaded from Google Play must use Google Play's in-app billing service as the method of payment.

• Developers offering additional content, services or functionality within another category of app downloaded from Google Play must use Google Play's in-app billing service as the method of payment, except: >

  • where payment is primarily for physical goods or services (e.g., buying movie tickets, or buying a publication where the price also includes a hard copy subscription); or
  • where payment is for digital content or goods that may be consumed outside of the app itself (e.g., buying songs that can be played on other music players).

Reference: https://support.google.com/googleplay/android-developer/answer/112622

With In-App Purchase on iOS and OS X, you can offer your customers additional digital content, functionality, services and even subscriptions within your paid or free app.

For example, In-App Purchase will allow you to sell:

• Digital books or photos
• Additional game levels
• Access to a turn-by-turn map service
• Subscriptions to digital magazines or newsletters
• Digital content hosted on Apple servers

There are four supported categories of In-App Purchase items that you may sell: 1) Content, 2) Functionality, 3) Services, and 4) Subscriptions. You must deliver your digital good or service within your app. You may not use In-App Purchase to sell real-world goods and services.

Reference: https://developer.apple.com/in-app-purchase/In-App-Purchase-Guidelines.pdf

Ashbey

Thanks for your answer! So, from what I understand, if within the app I sell a product from my e-commerce shop: - Google: being a physical good or service, I must not use Google Play's in-app billing, which means I am processing the purchase hence I don't pay Google. - Apple: You may not use In-App Purchase to sell real-world goods and services., i.e., I can sell them through my e-commerce and I don't have to pay Apple. Is it correct? – Shirk

To summarize, Google Play Store - you don't need to use Google Play's in-app billing service as the method of payment for physical goods or services; Apple's App Store - you may not use In-App Purchase to sell real-world goods and services. – Ashbey

But it's ok to sell it inside the app with my own site/platform, right? That's my only concern (actually my boss is who told me that's not allowed) – Shirk

If you're asking if Amazon, eBay and other e-commerce apps on iOS are legal then yes, you may sell the physical goods inside the app as long as you're handling the whole process using your own shopping/payment platform. – Ashbey

Great question, really! I have another one. Let's say my app is connected to a website, where user keeps his files, notes, etc and is able to purchase some membership services. Do I have to use Google Play's in-app billing service for these purchases if the website is not dependent on the app and can be accessed from a desktop browser? – Erysipelas

@Erysipelas I guess we'll never know – Untaught

@Erysipelas depends on if you are a small player. If small, they'll probably bully you into submission, so they can take their 30% cut. There are lots of favouritism and exceptionalism in how they implement their policies. – Beuthen

@Ashbey Can you update this? That Google Support link, or in any of Google's documentation, no longer has the "where payment is for digital content or goods..." quote. I posted a question about this here, – Mercurialize

Answer 2

I would have commented on another answer that is missing a bit of information, but as I lack the required reputation, I'll post this as a new answer.

It's 100% possible and allowed to sell physical goods or services in an app released on both iOS (via Apple Store) and Android (via Google Store), but the main difference between selling physical good or services and digital goods comes in the payment system to use. Both platform actually have 2 payments systems with, each, their own restriction and legal implementations.

In the case of Google Store (a.k.a. Google Play), it's as this: Any digital purchases that adds anything into the app itself must be done through Google Play In-app Billing system. To put it simple, this is the typical in-app purchase you see in any game that charge onto the Credit Card registered by the user on the Google Play account. Any Services and Physical Goods that are not set toward in-app usage have to use either your own version of a selling system (which has to be separated from Google Play In-App Billing system) or, if you want an more secure way, by using the Google Pay API.

The Google Pay API is really similar to the Google Play In-app Billing system as it allow any user to also use the credit card registered to their Google account (note that it's not Google Play, but a general Google Account), but the main difference is that the Google Pay API can also be used outside of an App (like on a website).

An example of stuff you must use the Google Pay API and NOT the Google Play In-App Billing system is to purchase physical goods (which requires a shipping address to be registered with the sell of goods) or services (like paying a rent of a room at an Hotel or the purchase of plane ticket, digital or not).

Here's the link toward the Google Pay API official website: https://developers.google.com/pay/api

For iOS and its Apple Store, the same equivalent exists, but the problem comes from the fact that both methods uses the same base system called Apple Pay.

For sells of goods and services, you need to address to the site "for merchants":

https://support.apple.com/HT204274

https://developer.apple.com/apple-pay/

For digital goods that are accessible directly through the app itself, you got to use the In-App Purchase system which is described here:

https://developer.apple.com/in-app-purchase/

There's one important thing you got to remember: Both stores might have some resistance to the idea of publishing an App as an App and as a Game. Both payment systems have their own rules and guidelines and, as such, if you are to put both a in-app purchase and an option to sell goods and/or services, both has to be visually separated and must NOT be mixed from one to another. For example, they might refuse to publish a game that has only physical goods to sell or an App in their Store app that is more of a game with in-app purchases and barely any instance of real-good purchases.

The cost of using either Google Play In-App purchase or Apple Pay In-App purchase is 30% of the sales.

On the other hands, Apple Pay for merchants (physical goods & services) have no additional cost from the credit cards issuers' fee which is usually around 3% to 6% based on the payment methods. For example, if the user is using Paypal to pay on Apple Pay, it's 2.9% + $0.30 USD per transaction. Direct Mastercards and Visa users might pay up to 6%. This is done and managed directly by Apple Pay.

Google Pay (for merchant) is also free and come with a fixed percentage rate of 2.9% per sales with credits cards and, in some countries, offers free transaction for direct-bank-transfers and debit cards.

In both cases, there's a limit per transaction. Google Pay has transaction limits, but their depends on the shops and user (shopper) data. I have seen the number $10,000 often as a limit per transaction.

Apple, technically, has limits or security based on the country where the purchase is placed. (All numbers are here: https://support.apple.com/HT207435 )

Proline

Thank you for your answer. I can confirm that you are totally right :) – Merriment