Apple's in-app purchase (IAP) guidelines and policies are essential for app developers who want to monetize their apps on the App Store. These guidelines ensure a standardized and secure purchasing experience for users, while also helping developers understand the dos and don'ts of integrating IAPs. In this article, we'll explore the key aspects of Apple's in-app purchase guidelines, covering everything from types of in-app purchases and compliance requirements to best practices for seamless integration.
If you are developing a new iOS app, you may have questions about monetization. Are you required to always use Apple In-App Purchase? Can you use PayPal or Apple Pay instead? It all comes down to what products or services you are providing in your app. Here are our Apple In-App Payment Guidelines.
What's Apple's In-App Purchase (IAP)?
Apple's in-app purchase (IAP) is a system that allows users to buy additional content, subscriptions, or features within an application on iOS devices. Developers can offer various types of in-app purchases, such as consumable items, non-consumable items, and subscriptions, all managed and billed through Apple's platform to ensure secure and standardized transactions.
Based on App Store Review Guidelines, updated October 24, 2022. All guidelines are subject to App Store review and approval.
Which Types of Apps Should Implement IAPs?
Implementing in-app payments correctly is crucial for compliance with Apple's policies. Here's a detailed overview of which types of apps should use in-app payments and which shouldn't:
Apple categorizes in-app purchases into four main types:
Consumables
Items that can be purchased and used within the app, but cannot be reused or transferred between devices. Examples include virtual currencies, extra lives, and temporary power-ups.
Non-Consumables
Items that are purchased once and do not expire or deplete. These can be used indefinitely and include features like ad removal, additional content, or a one-time upgrade to a premium version.
Auto-Renewable Subscriptions
These are subscriptions that automatically renew after a specified period unless the user chooses to cancel. Common examples include streaming services, news publications, and cloud storage plans.
Non-Renewable Subscriptions
Subscriptions that provide access to content or services for a limited time and do not automatically renew. Examples include seasonal sports packages and time-limited access to educational content.
11 Examples of Apps with Different Monetization Options
1. Selling Physical Products
If you are selling physical goods in your app, Apple In-App payment guidelines do not require you to use Apple In-App Purchase.
For physical goods, you can use credit cards, Apple Pay, PayPal, Stripe, or many other payment solutions to capture payment information. You will not be subject to App Store fees for the payments. But you may be subject to fees for the other payment platforms.
Examples include clothing, sports equipment, home decor, custom art, food delivery, pet supplies, groceries, and more. Physical gift cards are also captured in this category, as long as the gift card is mailed to the customer.
2. Non-Profit Donations
Eligible non-profits may apply for approval from Apple to solicit donations inside their mobile app. These donations can be provided through Apple Pay instead of Apple In-App Purchase and aren’t subject to fees or commissions.
Many mobile apps fall into this category. If you have digital content that is unlocked in your app via a one-time or subscription purchase, you must use Apple In-App Purchase.
If you have digital content that is unlocked in your app via a one-time or subscription purchase, you must use Apple In-App Purchase.
Examples of digital content include podcast or TV episodes, articles, recipes, removal of ads, customized app icons, and premium feature sets.
“Reader” apps, such as apps that provide news, movies, or music, have some special limitations. See below.
4. Game levels, currency, or loot boxes
Mobile games are a popular category of app that often utilize in-app purchase. All in-game purchases must use Apple In-App Purchase. You cannot use PayPal, Stripe, or credit card payments.
In a 2021 lawsuit Epic, the maker of popular mobile game Fortnite, fought against these Apple restrictions. Learn about the outcome.
5. Apple In-App Payment Guidelines: “Tip Jar”
A “Tip Jar” is a popular way for app or content creators to collect small amounts of voluntary revenue from their customers. If collecting inside the app, you must use Apple In-App Purchase for your “tips” and will be subject to Apple fees.
6. Digital Gift cards
Gift cards, certificates, vouchers, and coupons are all units that can be redeemed for digital goods or services. If you are selling them inside your app, you must use Apple In-App Purchase.
7. NFTs
Minting, listing, and transferring NFTs is allowed inside your mobile app, but you must use Apple In-App Purchase for payments related to NFT services. Purchasing, owning, or viewing an NFT cannot unlock in-app functionality.
8. In-app Advertising
If a user pays for their in-app content to be seen by more users in your app, this qualifies as in-app advertising and you must use Apple for your payment platform.
A common example would be boosting a post in a social media profile.
9. Advertising Management
If a user has ads running outside your app, and is managing or paying for them inside your app, you are not required to use Apple In-App Purchase.
Examples include managing TV ads, creating new search ads, and starting a billboard ad campaign.
10. Apple In-App Payment Guidelines around Person-to-Person Services
Person-to-person services involve you selling your time to 1 customer. The customer may not get an artifact in return, but you will have spent time delivering them some value. Person-to-person services are not required to use Apple In-App Purchase and can use other methods.
Examples include massages, physical trainers, nutritionists, tutoring, and real estate tours.
11. “Reader” Apps
Reader apps are defined as apps that allow users to access previously purchased content or content subscriptions, specifically magazines, newspapers, books, audio, music, and video.
If approved, your Reader app can have a special entitlement that allows users to manage their account and billing outside the app through a special link. When this link is in use, you cannot use Apple In-App Purchase and must only allow purchase of your services through your website.
If you do want to permit purchase inside the app, you must use Apple In-App Purchase and can’t use the External Link Account Entitlement.
A common example of this includes streaming video apps like Netflix. Many don’t allow you to subscribe inside the mobile app and only allow you to login to your existing account to access content.
Understanding which payment methods you need to use in your app is the first step to understanding app monetization.
If you need to use Apple In-App Purchase, Nami can help. With just a few lines of code, Nami handles payments for Apple and Google and allows you to focus on the app experience instead of the ins and outs of subscription management. Learn more.
Amanda Maricle is the Product Owner at Nami ML. She has an extensive background in app development and most recently product managed the Connect mobile app platform at HomeSpotter.
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