Apple promises third-party payment options in iOS for South Korean users

The image is by Alex Castro.

South Korean legislation designed to open up the perceived monopolies of Google and Apple will lead to the introduction of third-party payment options for the first time in the iOS app store. The alternative payments will only be available in South Korea, following the announcement of similar changes by Google last November.

The Korea Communications Commission shared Apple's decision, but details of the implementation are not known.

The trial was triggered by arguments over payment fees.

Apple charges developers a 30 percent fee on all digital purchases made by consumers. The fee has become more contentious for developers, and was at the center of the huge US lawsuit between Apple and Epic Games. A judge ordered Apple to allow third-party payments in the App Store, but this order was put on hold due to an appeal. Apple has made a small concession to "reader apps" like Netflix, allowing them to link to websites to sign up users for new accounts, but that's nothing like allowing in-app third-party payments.

Lawmakers in South Korea upheld complaints from developers about in-app payments. Some developers say it is unfair for companies like Apple to charge a fee for third-party payment support, even though Apple says it will charge a reduced fee. Fees are needed to maintain and promote their app platforms.

When third-party payments will be available in South Korea, Apple has not said how much it will charge developers, or how these payments will be made available to consumers. The exact details of the implementation will be important, as seemingly small decisions in things like app storeUI can be used to steer consumers one way or another.

Apple has a strong history of collaboration with the country's talented app developers and has a great deal of respect for Korea's laws. Apple said in a statement that it will always be guided by keeping the App Store a safe place for users to download their favorite apps. We are looking forward to working with the KCC and our developer community on a solution that benefits our Korean users.