4 ms·

Media streaming services "only" pay a 15% fee on IAP

briandear 6y ago
How much are credit card fees? Chargebacks? Fraud? Server costs to host your app and updates? The shopping cart/private infrastructure? You actually get some value from those percentages, but few people actually run the numbers.
- tick_tock_tick 6y ago
  ~3% or less.
  - zaroth 6y ago
    ~3% plus some fixed transaction fee. So for low dollar amount charges, like a $1.00 app purchase, the transaction fee can be > 30% (e.g. 2.9% + $0.30 on Stripe).
    - briandear 6y ago
      So selling an App for a dollar using stripe, you get $0.67. With the App Store, you get $0.70. And for that stripe fee you still have to have your own store, download infrastructure, and website to sell it on. A website that you also have to build, maintain, and market. And you have to deal with chargebacks and customer support during the buying process.
    - romanoderoma 6y ago
      Right, but that stops there At 1.2$ you already earn more then the Apple Store. $ 1.0 Apple: 0.7 Stripe: 0.671 $ 1.1 Apple: 0.77 Stripe: 0.7681 $ 1.2 Apple: 0.84 Stripe: 0.8652 So just make it 1.49 and you are good (you'll earn a full 10% more than with Apple) Anyway even at 0.99 price tag (I think Apple doesn't allow 1$) it only 4.5% less, on a million unit sold the difference would be about 31,710 dollars (693,000 VS 661,290).
- NavinF 6y ago
  2.9% is the highest you'll pay to accept cards unless you're in a high risk category. And even cheaper with volume Fraud happens with any payment provider including Apple. You don't have to pay extra for shopping cart infrastructure if you use Stripe or similar
  - wolco 6y ago
    That's stripe rate. You will pay higher elsewhere.
    - SahAssar 6y ago
      There are others with similar prices. Adyen: https://www.adyen.com/pricing https://www.adyen.com/pricing and Braintree: https://www.braintreepayments.com/se/braintree-pricing https://www.braintreepayments.com/se/braintree-pricing for example.
    - NavinF 6y ago
      Only if you choose a provider that charges above market rate :) IIRC, PayPal has offered 2.9% for over a decade
  - briandear 6y ago
    Where do you host your shopping cart? Your download server? “Using Stripe” doesn’t build your system. Stripe isn’t a standalone product. You have to have a developer to run and maintain your system. You have to pay server costs as well. And customer support costs dealing with payments and download and install issues. And with fraud on Apple, you are never affected directly. For example, a chargeback on Stripe costs you $20, unless you win. If you are doing any sort of volume, that is not only expensive, but time consuming — you have to defend your case. You never touch any of that with Apple. At the very least, you need a developer to both build and “run” your store and all of its associated infrastructure.

How much are credit card fees? Chargebacks? Fraud? Server costs to host your app and updates? The shopping cart/private infrastructure? You actually get some value from those percentages, but few people actually run the numbers.

tick_tock_tick 6y ago
~3% or less.
- zaroth 6y ago
  ~3% plus some fixed transaction fee. So for low dollar amount charges, like a $1.00 app purchase, the transaction fee can be > 30% (e.g. 2.9% + $0.30 on Stripe).
  - briandear 6y ago
    So selling an App for a dollar using stripe, you get $0.67. With the App Store, you get $0.70. And for that stripe fee you still have to have your own store, download infrastructure, and website to sell it on. A website that you also have to build, maintain, and market. And you have to deal with chargebacks and customer support during the buying process.
  - romanoderoma 6y ago
    Right, but that stops there At 1.2$ you already earn more then the Apple Store. $ 1.0 Apple: 0.7 Stripe: 0.671 $ 1.1 Apple: 0.77 Stripe: 0.7681 $ 1.2 Apple: 0.84 Stripe: 0.8652 So just make it 1.49 and you are good (you'll earn a full 10% more than with Apple) Anyway even at 0.99 price tag (I think Apple doesn't allow 1$) it only 4.5% less, on a million unit sold the difference would be about 31,710 dollars (693,000 VS 661,290).
NavinF 6y ago
2.9% is the highest you'll pay to accept cards unless you're in a high risk category. And even cheaper with volume Fraud happens with any payment provider including Apple. You don't have to pay extra for shopping cart infrastructure if you use Stripe or similar
- wolco 6y ago
  That's stripe rate. You will pay higher elsewhere.
  - SahAssar 6y ago
    There are others with similar prices. Adyen: https://www.adyen.com/pricing https://www.adyen.com/pricing and Braintree: https://www.braintreepayments.com/se/braintree-pricing https://www.braintreepayments.com/se/braintree-pricing for example.
  - NavinF 6y ago
    Only if you choose a provider that charges above market rate :) IIRC, PayPal has offered 2.9% for over a decade
- briandear 6y ago
  Where do you host your shopping cart? Your download server? “Using Stripe” doesn’t build your system. Stripe isn’t a standalone product. You have to have a developer to run and maintain your system. You have to pay server costs as well. And customer support costs dealing with payments and download and install issues. And with fraud on Apple, you are never affected directly. For example, a chargeback on Stripe costs you $20, unless you win. If you are doing any sort of volume, that is not only expensive, but time consuming — you have to defend your case. You never touch any of that with Apple. At the very least, you need a developer to both build and “run” your store and all of its associated infrastructure.