NIXSolutions: Patreon iOS App Faces Apple’s 30% Fee

Patreon memberships sold through the iOS app will soon be subject to a 30% fee from Apple on in-app purchases. In a post on Monday, Patreon said Apple is forcing the platform to use the company’s internal payments system starting in November or “risk being kicked out of the App Store.”

As part of the change, creators will have to switch to Patreon’s subscription payment method to continue earning money through the platform’s iOS app. That means Apple’s 30% fee will apply the first time a new member purchases, as well as each renewal. To offset the cost of the new fee, Patreon will give creators the option to automatically increase prices in the iOS app.

NIX Solutions

Impact on Creators and Subscribers

The fee will only apply to subscriptions purchased in the Patreon iOS app starting November 4, 2024. Existing Patreon subscriptions will not be affected by this change, nor will subscriptions sold on the Patreon website or in the Android app. However, given that Patreon already pays a fee to use the platform, Apple’s fee would put creators in a more difficult position.

“Unless creators choose to pay Apple’s App Store fee themselves, new transactions in the Patreon iOS app will cost more than the same purchase online due to Apple’s fee,” Patreon writes. Some creators may be able to hold off on switching to the new billing method until November 2025, but they won’t be able to sell in-app memberships once Apple’s requirements go into effect.

Until this year, Patreon allowed creators to bypass Apple’s 30% fee by using alternative payment processors, notes NIX Solutions. In 2021, Patreon CEO Jack Conte told Decoder that the company doesn’t have “any special contract with Apple” and has to “deal with App Store policies and review process like everyone else.” He said Apple may have given Patreon a break because “users don’t come to Patreon to discover creators and content.” But last year, Patreon announced it would have to switch to Apple’s in-app payment system because Apple’s 30% fee on digital goods will go into effect in early 2024. Patreon said Apple will extend the fee to new memberships and subscriptions later this year.

We’ll keep you updated on any further developments regarding this change and its impact on creators and subscribers. As the situation evolves, Patreon may provide additional guidance for both creators and patrons on how to navigate these new payment requirements and potential price adjustments in the iOS app.