Apple Now Allows Third-Party Payment Providers in South Korea

As of today, Apple will let developers use third-party payment providers for their apps on the South Korean App Store — reports 9to5Mac.

Back in August of last year, South Korea passed a bill prohibiting app store operators like Apple and Google from forcing developers to use their own payment systems to process purchases.

Apple announced its intentions to comply with South Korea’s decision in January. However, local lawmakers weren’t entirely satisfied with the tech giant’s approach.

Apple today published details on how the new arrangement will work. Developers who wish to offer alternative payment methods to users will have to use the StoreKit External Purchase Entitlement. They will therefore need to submit a separate version of their app exclusively for distribution in South Korea.

Apple has so far validated KCP, Inicis, Toss, and NICE as qualified payment providers in South Korea. Any payment processor developers want to use must first be verified by the App Store operator.

Devs who want to use a third-party payment provider must also fill out a new request form on the Apple Developer website when submitting an app to the South Korean App Store.

They are also required to ensure their apps explicitly inform users that Apple does not support whichever alternative payment system(s) they use, and therefore will not be responsible for any subscription management or refunds.

Apple will still charge a commission on purchases, albeit with a 4% haircut for transactions processed outside the App Store. Devs using alternative payment providers will end up cutting Apple in for 26% instead of 30%.

The company also said that features like Ask to Buy and Family Sharing won’t be available on apps using third-party payment providers.

Developers who want to continue using the App Store’s payment system are free to do so. Apple implemented similar measures for dating apps in the Netherlands earlier in the year.

Apple’s iron grip over the App Store and hefty commissions have caught the attention of governments and regulators the world over in recent months. The European Union is currently in the process of approving the Digital Markets Act (DMA), which would force the iPhone maker to allow app sideloading and third-party app stores.