To say there’s been mixed reactions to Apple’s newest policy on in-app purchases would be mild. Essentially, Apple wants companies who provide something like a newspaper subscription, that can be purchased outside of an app, to make it available inside the app as well — for the same price of less. It sounds great, but the problem publishers are having is the 30% Apple wants to take off the top. From Apple’s stand point, the amount of users on iOS more than makes up for that 30%. After this last quarter, Apple was the number one seller of mobile computers when including the iPad, edging out HP by nearly one million units sold. With the total number of units sold lingering around ten million, Apple thinks that if they’re bringing in money for publishers, then they should see a piece of it. That’s not what Google thinks.
Google has come out swinging today with the announcement of One Pass. Google One Pass is an in-app/out-of-app payment model that can now be implemented into mobile applications and websites. The system incorporates Google Checkout, and according to Google “is currently intended for periodicals, such as news and magazines, but is a flexible payment system that can be used for many other types of content.” As of right now, One Pass is available in France, Germany, Spain, the UK, and the US and Canada.
The key factor announced with the arrival of One Pass is how much Google wants to arrange payments: a measly 10%. To put this into perspective, with a $10 subscription purchase on iTunes, Apple gets $3, publishers get $7. With One Pass, Google gets $1, publishers get $9.
Another interesting note on One Pass, Google will be allowing publishers to “maintain direct relationships with their customers.” Translation? Don’t worry guys, your customer’s info, the info you use for advertising purposes, you can still have it. That can be a huge incentive.
Early thoughts on One Pass?