Can an iOS App selling physical goods use an auto-refilling “credits” model to charge for those physical goods?

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Created Nov ’17

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I'd like to setup a "refillable balance" payment model in my iOS app, like toll passes do (e.g. Chicago's iPass).

My app is used to send postcards: which are considered a "physical good" by Apple. I currently have users put in their credit cards and we charge them each time they send one of our postcards.

For various reasons we want to move away from using "dollars" and transactions happening every time a postcard is sent.

Having a running balance of a set amount that auto-refills when it reaches a certain point would be ideal.

So ideally:

User can load their app “balance” with $XX.XX using either a credit card or IAP
They debit from that at whatever speed they desire buying our widgets
When the balance is almost empty (e.g. only has $10 left), we recharge their credit card or using IAP $XX.XX to refill their balance.

Ideally we can just use credit cards for this and not IAP, but I don’t think Apple would allow that. IAP is fine, but is our second choice. Thing is, I’m not sure Apple even has an IAP business model for this approach….

Ideally this all should happen in the app - it’s not a great UX to do some of this in the app and some of it outside, and from what I understand, Apple will deny your app if you link outside the app for payments.

I'm stumped and feel like I'm in a gray area that Apple doesn't have an IAP method for but will deny my app if it doesn't use IAP.

Any ideas?

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Answer 1

KMT OP

Nov ’17

>not sure Apple even has an IAP business model for this approach

See the Business section Physical Goods and Services Outside of the App in the ASRGs - devs are not allowed to use IAP to sell real world physical goods.

>from what I understand, Apple will deny your app if you link outside the app for payments.

Not sure where you learned that, as it seems a common tactic, when properly executed.

Your scheme to bill outside the app should fly, as long as it's clear to the user (and app review) that a 3rd party billing mechanism is in play. Designing a bulk pre-pay scheme is on you, based on your payment provider, etc.

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Answer 2

PBK OP

Nov ’17

The old guidelines had an ambiguously worded restriction on using third party payment systems in the app. It was unclear whether the restriction applied to the 'payment system' being used in the app or the 'item purchased' being use in the app. The new guidleines seem to have no restriction on using thrid party payment systems - provided that you are not required to use IAP. In this case it sounds like you are not required to use IAP.

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