Apple wants a giant bite out of NFT sales on App Store, find out why
- Apple announced that apps can now sell NFTs through its App Store and the American tech giant will collect 30% fees on each transaction.
- Several companies have expressed their displeasure on the overpriced cut of sales.
- While NFTs are in regulators’ and lawmakers’ crosshairs, startups are now critical of Apple’s giant share of commission and pricing conventions.
NFT sales volumes have picked up pace and startups are looking for a boost from mobile apps to sell digital collectibles. However, Apple’s 30% commission has emerged as an obstacle. Startups believe pricing conventions are difficult to apply to volatile digital assets.
Also read: Shiba Inu: This is what happens when Ethereum whales move 4.35 trillion SHIB
Apple imposed 30% commission on in-app NFT purchases
NFT developers and startups took note of Apple’s update on commission on NFT sales. The Apple App Store has updated its policy and imposed a 30% commission on NFTs sold through apps on its marketplace, effectively putting NFT purchases in the same boat as regular in-app purchases.
According to a report from The Information, Apple is now onboard with NFT sales through apps listed on its marketplace but imposes its standard commission on in-app purchases of 30%. This is similar to the Android app store Google Play.
NFT developers have slammed Apple for being “grotesquely overpriced,” comparing it to standard NFT marketplace commission, around 2.5%.
Magic Eden, Solana-based NFT market has withdrawn its service from the App Store after learning about Apple’s policy change. Apple offered to lower its commission by 15%, however Magic Eden made its exit.
Other NFT marketplaces have limited their functionality due to Apple’s giant share of commissions. This is likely to limit the number of NFT sales through Apple's App Store and is likely to discourage developers from powering the sale of digital collectibles.
While most developers in the marketplaces have criticized Apple’s move, a Web3-based CEO, Gabriel Leydon, sees the positive side to the situation. Leydon said,
Everyone is focusing on Apple wanting its 30% cut of each transaction without realizing this could put an ETH wallet in every single mobile game onboarding 1B+ players! I will HAPPILY give Apple a 30% cut of a free NFT.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
