IAP, Digital Marketplace, and Split Payment Recipients

Question

Created Jul ’22

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I have an app where users are allowed to sell their digital content. I am splitting the sale by 25%/75% where my company gets 25% of the sale amount and the content owner gets 75% of the amount.

Does IAP allow for split payment recipients like Stripe Connect? Or do I need to implement my own method of paying out the content creators for each sale?

Also, if a user is charging $10 for their content, does Apple take 30% ($3) of that, and then we divide the remaining $7 by 25%/75%? Or does Apple take 30% of my company's 25% earnings ($2.50) from the transaction?

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Answer 1

endecotp OP

Jul ’22

Apple will pay the proceeds to you, you will then need to send the other party’s share to them.

Apple takes 30% (or 15% if you are a small business) from what the user pays.

Beware of tax. Developers are sometimes surprised to get less than the expected because Apple have deducted VAT or equivalent.

Are you sure IAP is right for this application? Is the “digital content” “consumed within the app”?

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Answer 2

devgregfong OP

Jul ’22

Here is an example. User A puts up content for their blog on my app. User B pays a one-time fee to get access to User A's blog content on the app. So if I understand correctly, I will have to use IAP for the one-time transactions between User A and User B and Apple takes 30% of the initial fee amount.

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