Apple Introduces the ‘Grace Period’ for Expired App Store Subscriptions.
After the keynote event 2019, there is no doubt in saying that Apple is concentrating on subscriptions. Now they had taken one more step to hold their App Store subscriptions. Nearly 10 months ago Google did this to hold their subscribers. They introduced the grace period in the Play store and it worked well. Now Apple is also doing the same.
But the difference here is Google’s implementation works well, developers don’t need to write any additional code. But in the App Store, it will be a little troublesome to developers because they need to write additional code for this implementation. This completely depends on the developer. Apple doesn’t impose the grace period as mandatory.
The grace period gives Apple more time to collect payments on behalf of the developers. There are a lot of reasons for the lapsed payments. It could a credit card failure or billing address needs to be updated. Because of these kinds of silly reasons developers are losing revenue.
To opt-in, this feature, It needs to be enabled from App Store Connect, where developers manage their apps. Here, you can navigate to “My Apps,” then in the toolbar click Features –> In-App Purchases, and in the new Billing Grace Period section, click “Turn On.” Of course, this is not the end. Developers need to write the code and build server-side support.
The developer can choose the grace period based on the subscription renewal period. It can be six days or sixteen days depending on the billing cycle and developer. In the above picture, we considered the monthly billing cycle. If the user failed to renew the subscription, he enters into the grace period of sixteen days.
In the grace period, the user will have complete access to the paid services of the app. If he renews within the grace period, the billing cycle will continue. If the user resubscribes within 60 days but after the completion of grace period it will not affect the developer’s revenue.
If the user resubscribes after 60 days you will be considered as a new subscriber and the number of days you have subscribed will be reset. This will cut the revenue of the developer because Apple takes 30% of the fee and gives 70% of the fee to developers for the first year and from the second year Apple takes only 15% and gives 85% to the developers. These rules and charges are the same for Play store developers also.
For example, if you resubscribe to service after 60 days from the last day of first billing cycle then Apple will reset the days you subscribed for the service. They will start count as 1 from the day you resubscribed and from that day till the 365th day, whatever amount you pay for the service, 30% will be taken by Apple as a service charge and after 365th day Apple will take only 15% as commission.
In Q3, Apple services revenue increased by 13% to $11.46 billion and holds the fifth of Apple’s revenue. So this is the best time for Apple to make thinks much better to grab more subscribers and to eliminate common problems faced by users and developers too.
Hi, this is Chaitanya. I am a Student, Blogger and WordPress developer. I made this blog to share my knowledge and I hope this blog very helpful for you.