Using 3rd-party Payment Method for Contents across Platform

Question

Created May ’17

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Hi there,

We are developing an education app. We want to enable users to purchase credits in the app and buy teaching resources (consists of texts, images, audios, videos) using the credits. My question is whether we could use 3rd-party payment methods, instead of IAP, for the credits. I did a search on the forum and there are a lot of thread related to this. But the answer varies from different requirements and may violate the guidelines (since they are guidelines not rules). I am confused. Here is my requirement:

1. The app has both IOS and Android versions. Users use money to buy credits, and use credits to buy all the services/resources in either IOS app or Android app.

2. Typically, teaching resources consists of texts, images, audios, and videos.

3. Some of the teaching resources include additional offline training services.

4. We do not own the teaching resources and have to pay the corresponding authors money for every transaction (usually above 50%, sometimes above 70%).

5. In the future, we want to provide offline materials together with the teaching resources, also bought via credits. But currently there is no such functionality in the app.

Thanks in advance,

Frank

Answered by KMT in 231753022

>as PBK said, the real problem is that my good is a combination of "reader" app and offline material/service.

I don't see how that alters my response - it seems to confirm it, actually. Notice the two 'if' qualifiers.

>Do I have to split the...That will be a horrible user experience.

I agree - thus my response to go w/3rd party (only)...glad to see you confirm, thanks and good luck.

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Answer 1

KMT OP

May ’17

> The app has both IOS and Android versions. My question is whether we could use 3rd-party payment methods, instead of IAP, for the cred

Not could - should, in your example, I think. I don't see how it would violate the ASGRs, [ see Physical Goods and Services Outside of the App], as long as you make it clear to the user they are using a 3rd party payment scheme.

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Answer 2

PBK OP

May ’17

> ....consists of texts, images, audios, and videos....... additional offline training services....offline materials together with the teaching resources.

If these materials are digitally delivered and used within the app then unless your app is a "reader" app (guidelines 3.1.3) you must use IAP. If these items are 'real world items' used outside of the app then you may not use IAP (3.1.5).

>....have to pay the corresponding authors money for every transaction.....50%

If this is a percent net of expenses (e.g. MasterCard fees, shipping expenses, and, most importnatly, the 30% that Apple charges for IAP) then there is no issue. If it is not net of the 30% then you need to renegotiate with your suppliers.

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Answer 3

XLingual OP

Jun ’17

Thanks for your answer. As I said above, my good is a combination of "reader" app and offline material/service. It contains both "materials that are digitally delivered and used within the app" and 'real world items' used outside of the app. Do I have to split the good into two parts, one for the content reader using IAP and the other for Physical Goods and Services Outside of the App, using 3rd-party payment gateway? That will be a horrible user experience.

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Answer 4

PBK OP

Jun ’17

>Do I have to split the good into two parts, one for the content reader using IAP and the other for Physical Goods and Services Outside of the App, using 3rd-party payment gateway?

As stated above, if your app is operating simply as a 'reader app' with respect to the digital content then you do not need to use IAP and may use a third party payment system as per guideline 3.1.3. So, no, you do not need to split it up.

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Answer 5

XLingual OP

Jun ’17

I got it. Thanks for your response. It is very helpful!

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