Apple Consumes 30% Commission on NFT In-App Purchases, New Report Reveals
A report by The Information claims that Apple is pressuring companies to pay its usual 30% fee for in-app purchases on all NFT exchanges, discouraging startups from providing services to the tech giant’s users.
“So far, however, most see some hurdles, including up to 30% commission fees that Apple charges on in-app purchases, as well as difficult-to-enforce pricing conventions for volatile digital assets,” said declared on report added.
The outlet also quoted Magic Eden co-founder and CTO Sidney Zhang as revealing that due to Apple’s fees, the company never attempted to provide shopping and downloading features. sale on its application despite a reduced offer of 15%.
According to marketonly 2% of each transaction is taken by Magic Eden.
Declining trading volumes
Notably, through August, the NFT market saw a substantial decline in global NFT sales volume for seven consecutive months as investor interest in digital collectibles waned.
Be[In]Cointelegraph previously noted that NFT’s global sales in July were around $647.23 million, compared to a sales figure of $879 million in June. After hitting the second-highest peak in January with sales volume of $4.78 billion, the 26% month-over-month decline was recorded as the result of fewer unique buyers.
As a result, market entrepreneurs apparently planned to boost sales through mobile apps as the NFT market could not resist amid general crypto weakness.
“It seems like the position is that Apple doesn’t really want [its] users can buy or sell NFTs,” Alexei Falin, CEO of NFT startup marketplace Rarible, told the newspaper.
However, the question arises whether Apple is losing a new customer base and potential revenue stream due to its existing model.
Should Apple explore broader markets with new offerings?
According to a recent analysis by Juniper Research, there will be 40 million NFT transactions worldwide by 2027, up from 24 million in 2022 based on the company’s moderate adoption calculations.
That said, Apple reportedly does not accept crypto payments on its platform per se, which makes NFT transactions all the more difficult. IANS quoted Pocket Network’s Arthur Sabintsev stating that this “makes it really difficult to price it because you have to program all these values dynamically”.
In July, Senate Banking Committee Chairman Sen. Sherrod Brown asked Apple and Google to explain their procedures for reviewing and approving crypto trading and wallet apps for download from their app stores. . As Apple has also come under fire for fake crypto apps, the tech company recently dodged a proposed class action lawsuit over a fraudulent cryptocurrency wallet app on its App Store. But it also becomes clear that because the App Store is considered a publisher of the content rather than a creator, it cannot be held liable for bogus apps under Section 230 of the Communications Decency Act, such as the reported Bloomberg.
At the company’s last press conference, which marked the release of the iPhone 14, fraudsters also reportedly managed to defraud thousands of Apple supporters by endorsing a fake cryptocurrency.
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