alt Hacker NewsThis is not only affects Epic. Basically any other app, game or SaaS developer can now earn more money because payment processing costing them 1-3% instead of 30%.
And small companies are hit by 30% platform tax the most. More money for small compsnies mean more competition.
Not necessarily.
For starters, small companies are paying 15%, not 30%.
I'm also not sure where a small company can find a payment processor that will only charge 1%. Stripe charges 2.9% plus 30 cents per transaction.
If you have a $4.99 in-app purchase that will cost you 44 cents per transaction to use Stripe vs 75 cents to use Apple's IAP.
But Stripe does not act as a merchant of record so you are responsible for remitting sales tax yourself. Registering for and remitting sales tax in every jurisdiction where you have nexus adds huge administrative overhead to a small company.
If you want to avoid this overhead, Paddle will act as a merchant of record for you, but then you're paying 5% plus 50 cents which adds up to 75 cents on a $4.99 purchase anyway.
Linking to external payments also reduces conversion rates (https://www.revenuecat.com/blog/growth/iap-vs-web-purchases-...) compared to using IAP.
Taken all together, depending on their pricing structure, small companies may very well be financially better off sticking with IAP rather than linking to external payments anyway.