How iOS in-app purchases work for Commerce

  • Updated

Apple is requiring us to use their in-app payment system in order to comply with their App Store policies. This means purchases made from our iOS app using Apple in-app payment will be subject to Apple’s 30% App Store fee.

iOS in-app purchases for Commerce are currently available to fans in the US and Canada. Fans who are not located in the US or Canada can still view products on the iOS app but are unable to purchase products on that platform.

When fans buy products from your shop in the Patreon iOS app, their transactions are processed directly by Apple through their in-app payment system. This means Commerce purchases made from the Patreon iOS app will be subject to Apple’s 30% App Store fee. Patreon does not charge a payment processing fee on iOS transactions.

Learn more about iOS in-app purchases, product pricing options, and the App Store fee below.

With in-app purchases on iOS, you’ll be able to:

  • Give fans the added convenience of purchasing content directly in the Patreon iOS app with saved Apple payment methods
  • Accept secure payments from fans around the world in 44 currencies and nearly 200 payment methods (Apple Pay, credit or debit cards, store credit, region-specific payment methods, and more) once iOS in-app purchases are fully available in all countries. This includes the 16 currencies and 4 payment methods available through Patreon today

iOS product pricing options:

You can choose to either set a higher price in the iOS app to maintain your earnings on a product sale (the default option), or absorb the App Store fee yourself. You can change your choice at any time by visiting your Account Settings. See a sample calculation of approximate earnings for each option below.

Maintain your earnings (default): Set higher product prices for the iOS app. We’ll calculate the higher price to ensure you earn at least the same on iOS sales as you do on other platforms after all fees. This is the default option, so if you do nothing, your products will automatically be shown with a higher price in the iOS app.

  • What it looks like: When fans make a purchase, they see a higher price on iOS than on other platforms. You earn at least the same amount after fees as you do elsewhereIAP_Web_App_PDP.png
  • How the iOS price is calculated: To calculate the iOS sale price, your list price is increased by roughly 43%*. Then, it’s rounded to the nearest 50 cents for customer simplicity. That way, after subtracting the App Store fee, you will earn at least as much as you would if the purchase was made on the web
    *Note: Fully offsetting the App Store fee to maintain your earnings (30% of the higher iOS sale price) requires an increase of 1 / (1-30%), which is 42.86%.

Absorb the App Store fee: Alternatively, you can choose to keep product prices the same across platforms by absorbing the App Store fee yourself. If you choose this option, fees will be applied to your list price for all purchases made through the App Store, which means you’ll earn less per sale on iOS transactions.

  • What it looks like: When fans make a purchase, they see the same sale price no matter where they buy the product

IAP_Same_Price.png

As with all product purchases, successfully processed sales on iOS are also subject to Patreon’s 5% platform fee and currency conversion fees (if applicable), applied on the sale amount before sales tax. Patreon does not charge a payment processing fee on iOS transactions. Learn more about Commerce pricing and fees here.

This approximate breakdown shows a USD transaction (with no currency conversion fees) across all product pricing options. Actual proportions will vary based on creator list price, creator currency, and fan currency.

IAP_Breakdown.png

In addition, here’s an illustrative breakdown of fees and earnings on a product that you price at $10. (This example is a USD transaction with no currency conversion. Actual amounts and percentages vary depending on the transaction amount, creator currency, and currency conversion.)

If you list a product for $10…

 

On web or Android
Nothing changes

On iOS
You set higher price (default)

On iOS
You absorb the fee

Sale price

What fans pay

$10.00 $14.50 $10.00

Apple's App Store fee

30% of sale price

$0 $4.35 $3.00

Patreon platform fee

5% of sale price

$0.50 $0.73 $0.50

Patreon payment processing fee

Varies by currency. USD 2.9% + $0.30 of sale price

$0.59 $0 $0
Patreon total fees $1.09 $0.73 $0.50
You earn $8.91 $9.42 $6.50

A note on Patreon's fees on iOS transactions: Patreon will not charge payment processing fees on iOS purchases, which means that we will typically generate less revenue on iOS transactions compared to non-iOS transactions. All fees are taken out of the final sale price (pre-tax), so if you set a higher price on iOS, our platform fee will be calculated using that higher price. In general, we expect Patreon to earn less on iOS transactions overall than if fans purchased through other means, even if you choose to set higher product prices in the iOS app.

Payout

Funds from in-app purchases will appear as pending for up to 75 days before they can be withdrawn from your Patreon balance. This additional period is to account for the time Apple requires to process and confirm the funds, and only applies to earnings from in-app sales. As soon as funds are available in your balance, you may pay them out immediately.

Refunds

Fans can request refunds on products purchased from the iOS app directly from you (as they do today), or through Apple. Apple will process refunds within 60 days of the purchase taking place:

  • Through Patreon: You can refund purchases as you normally would for other Commerce purchases.
  • Through Apple: Fans can request a refund from Apple via reportaproblem.apple.com. Apple will handle the refund on your behalf and communicate with the fan on the status of the refund. If the refund is granted, funds will be issued back to their Apple account

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