Patreon Plans Major Update to iOS App Post Epic Games v. Apple Ruling

In a significant development for creators and their businesses, Patreon is gearing up to submit an update to its iOS application that will allow creators to accept payments outside of Apple's payment system. This announcement comes from Adiya Taylor, a spokesperson for Patreon, who shared the news with The Verge. The timing is particularly noteworthy following a recent landmark ruling in the ongoing legal battle between Epic Games and Apple, which determined that Apple could no longer impose fees on payments that are made outside of apps.
This is a huge moment for creators and their businesses, Taylor emphasized. The iOS app is the number one platform for fan engagement on Patreon, and we believe this ruling allows creators to get paid without giving Apple 30 percent. This update aims to facilitate a better financial outcome for creators, allowing them to retain more earnings from iOS-based fan payments. As an initial step in this new direction, Patreon plans to submit an app update for Apples review that will enable these external payment options.
Last year, Patreon found itself in a challenging position when it was compelled to transition to Apples in-app purchase (IAP) system. This system imposes a hefty 30 percent fee on all new memberships purchased through the app, leaving creators with significantly less revenue. At the time, Patreon had to make it clear that failure to comply with Apples guidelines could lead to the app being removed from the App Store altogether.
Reflecting on the past decisions, Taylor remarked, When we first announced rolling out Apples IAP requirements last year, we shared that we used three principles to guide our decision in how we wanted to move forward: transparency, control, and stability. She went on to state that the company is now actively exploring additional actions they can take to enhance the experience for creators and their fans while keeping them informed of any forthcoming changes.
While Taylor did not provide a specific timeline for when the much-anticipated update might be rolled out, the enthusiasm surrounding the ruling and potential changes is palpable. Other companies are also reacting to the ruling; for instance, Spotify informed The Verge that they are planning an app update as well. Spotify will move quickly to submit an app update to Apple, enhancing the experience for our consumers across the United States, explained spokesperson Jeanne Moran. Similarly, Proton CEO Andy Yen announced that they intend to lower prices for users by up to 30 percent in light of the ruling.
This shift in payment policies not only presents new opportunities for creators on platforms like Patreon but also indicates a broader movement in the tech industry regarding app store regulations and payment systems. As these changes unfold, it will be crucial to observe how they impact both creators and consumers alike.