Apple lets app developers use 3rd-party payment systems in South Korea

Tech giant Apple on Thursday said that the developers in South Korea can now use a third-party payment system, with certain riders.

To comply with the new South Korean law, developers can use the 'StoreKit External Purchase Entitlement'.

"This entitlement allows apps distributed on the App Store solely in South Korea the ability to provide an alternative in-app payment processing option," the company said in a developer update.

However, the company clarified that if they use the entitlement, "some App Store features, such as Ask to Buy and Family Sharing, will not be available to your users, in part because we cannot validate payments that take place outside of the App Store's private and secure payment system".

"Apple will not be able to assist users with refunds, purchase history, subscription management, and other issues encountered when purchasing digital goods and services through an alternative purchasing method. You will be responsible for addressing such issues," the company stated.

The Telecommunications Business Act in South Korea was recently amended to mandate that apps distributed by app market operators in South Korea be allowed to offer an alternative payment processing option within their apps.

Apple also said that alternative payment systems cannot be used "in the same app with Apple's in-app purchase system" and purchases must be completed within the app itself rather than linking out to a web view.

"Developers who want to continue using Apple's in-app purchase system may do so and no further action is needed," said the tech giant.

In March, South Korea's Cabinet had approved a revised bill that would ban app store operators from forcing developers to use their own in-app payment systems.

The revision was a follow-up to the enforcement decree of the Telecommunications Business Act that went into effect in September 2021, which made South Korea the first country in the world to introduce such curbs on the in-app billing policies of Apple and Google.

Now, developers will be able to take payments using the third-party service providers pre-approved by Apple.

--IANS

vc/na