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Where do you get this number for Stripe ? Right now, in the EU, the standard fee (before negotiation and volume consideration) is 0.25ct + 1.5% which will work
by seec 3y ago
Where do you get this number for Stripe ?
Right now, in the EU, the standard fee (before negotiation and volume consideration) is 0.25ct + 1.5% which will work out to about 26.5% cut for a 1-euro payment that is the worst-case scenario currently possible in the App Store as far as I am concerned.
They sell added services but there is no obligation for them and I figure most developers wouldn't care for them.
The most expensive it can get is for international payment with currency conversion: 0.25ct + 3.25% + 2%. I don't know exactly how they do the fee calculation, but for a payment of 1, you would get a cut of about 30% max.
Apple definitely does NOT provide the same service, since they do not allow international payment in their different localized app stores and they don't do currency conversion (they will let the bank charge you for that, which will get MUCH more expensive).
And the stripe number becomes much better with bigger price because of the fixed transaction fee. If you sell an app for 5$, the minimum you would have to give Apple would be 75 cents (the 15% they will allow under certain conditions) when the maximum you would pay to stripe would be 51 cents, or about 10.25%.
Realistically most developers that do not have the scale to operate a fully custom system will address one or 2 big regional markets (with mostly shared language, culture and currency) and they would be just fine with the standard offering of stripe that would bring the cost to around 6.5%.
While setting up everything would be a bigger hassle, for most developers that make enough money to live off it, that's a no brainer. Even if we argue that Apple provides more value than the base stripe and push to 10% cost everything included, for a dev making 100K in sales, it's already "free" 5K coming their way.
Many seem to mistakenly think that Apple allows dev to sell their app worldwide with very little hassle. Not only this is not true since many apps are actually region locked for whatever reason and cannot be purchased in a different market (it happens to me all the time, especially with apps from the US or from Germany) but Apple does not realy simplify the process of localisation, marketing, and proper tax declaration in each relevant market.
Apples gives you pretty sales statement with everything you need, but any decent system will do that, you still need to do the actual work of compliance if you are big enough or care enough to follow the laws.
There are some argument to be made about the benefits of Apple integrated solution but it is only relevant for cheap software that are impulse buys precisely because they were cheap enough. The higher the price of the software the less relevant Apple solution is. Especially considering the inflexibility and dumb "categories" they push everything into. And if you have to push subscription or in-app purchase nonsense like they currently do, the economics are even better for external solution.
- dns_snek 3y ago> Where do you get this number for Stripe ? That's Stripe's US fee. CC processing fees are much higher in the US so that card issuers can run all of those "cashback" programs.
- seec 3y agoI checked and it is indeed higher at 30cts + 2.9% but the international cards and currency conversion fee are much lower (1.5%, 1%). Your base case is a bit worse and it will work out over 30% for a payment of 1 (0.329) but if you sell a 5$ app, it would be 0.445 or about 8.9% like you said. You are still 6% lower than the minimum Apple would charge you. It's not clear cut depending on what you need, but at the same time if you are small enough to qualify for the 15%, you probably don't need much or have time to figure it out.