Many marketplaces are reluctant to offer NFT purchases through iPhone apps because of the eye-watering commission taken by the tech giant.
Listen to the CoinMarketRecap podcast on Apple Podcasts, Spotify and Google Podcasts
The dominance of Apple's App Store is hurting NFT startups, according to a new report.
According to The Information, many marketplaces are reluctant to offer NFT purchases through iPhone apps because of the eye-watering commission taken by the tech giant.
Whenever an in-app purchase is made, Apple takes a 30% cut — and to make matters worse, cryptocurrency payments are not supported.
This is a big problem for NFT marketplaces. They often take a more modest commission of about 2% or 3% of a crypto collectible's value — meaning they'd make $2 or $3 if an NFT sold for $100. But unfortunately for them, Apple wouldn't want 30% of the company's $3 revenue — they'd want $30 of the whole $100.
All of this helps explain why the likes of OpenSea and Rarible don't actually allow NFTs to be purchased through their dedicated iOS apps — and instead, they direct users to their website. What's more, forcing consumers to use fiat can have big ramifications because of how volatile the crypto markets can be.
Executives at top NFT brands told the news outlet that Apple's policies are harming their business models at a time when trading volumes are already suppressed because of the bear market. They argue that, if Apple's policies were to be softened, it would serve as a huge boost during a time of difficulty.
In the Spotlight
Apple has long faced scrutiny over how it runs the App Store, which is hugely influential considering that most American consumers have iPhones. Epic Games, which makes Fortnite, ended up in a legal showdown with Apple after unveiling a feature that sidestepped in-app purchases altogether… and the 30% fee that comes along with it.
Crypto exchanges fall under different rules to NFT marketplaces — and this means that the likes of Coinbase can offer trades through an app without worrying about such a hefty commission. But as the world of digital art grows — and more big brands start to embrace this technology — Apple is facing growing calls to introduce a set of policies that are specifically for this space.
Leaders within the industry aren't all too confident about whether they'll get what they ask for — and according to The Information, some are actually scared of speaking out against Apple "because of the power they have over what developers can include in their apps."
Apple didn't address these claims when asked for a comment — and instead pointed to its in-app purchasing guidelines.
