Patreon creators will be forced to pay the “Apple Tax” on iOS subscriptions from November

Apple has caused consternation in the creative space as it requires Patreon – the creator monetisation service – to move all purchases and subscriptions made via its iOS app through its own integrated payment system which takes a 30% cut. The deadline for compliance is November 2024, with a penalty of Patreon’s app being ejected from iOS. The Patreon Android app and website remain unaffected.

This change was previously announced by Patreon in December 2023 but the current outcry comes as the so-called 30% “Apple Tax” is officially set to be leveraged on new paid memberships on Patreon’s iOS app from November 4 – which users were further informed about today.

The December 14 blog post that announced the current changes said:

“Apple is requiring us to start using their in-app payment system in order for Patreon to remain available in the App Store, which means purchases made from our iOS app will be subject to Apple’s 30% App Store fee. These changes will take effect in two phases:

“(1) Rolling out in January 2024, Apple will start taking a 30% fee on Commerce purchases (i.e. digital product purchases) made through Patreon’s iOS app.

“(2) Later in 2024–we’re still determining the exact date–Apple will start charging their 30% fee on paid memberships (i.e. recurring subscriptions) purchased through Patreon’s iOS app. This will have no impact on existing paid memberships; it will only affect new paid memberships purchased in the iOS app after the changes take effect later in 2024.”

To ameliorate the situation, the company has today announced it will include the introduction of a new option within the iOS app that will allow creators to increase their to match the new Apple transaction fee to preventing any loss of income from that platform. This move is not without its downsides – not least because it might deter potential patrons. It is also mandating all Patreon users to switch to the newer billing system that had previously only been voluntary.

Patreon was launched in 2013 by developer Sam Yam and musician Jack Conte with the goal of allowing creators to make a living off their work. In the decade since it has become one of the most popular monetisation platforms for creators with single payments, monthly and annual subscriptions providing a vital lifeline. The company takes a 5% cut from single transactions, and 8-12% of subscription incomes, however. Taking into account the additional concern of local income taxes and the additional concern of Apple’s 30% in November, many users have wondered if the continued use of the platform is still viable.

Jack Conte took to YouTube to talk through the changes today, saying:

“Apple has their own payment system called In-App Purchases and they’re requiring that Patreon use their payment system, In-App Purchases, instead of our payment and billing systems in the Patreon app starting in November of this year. If we don’t do this Apple might kick us out of the App Store which would be terrible for creators and terrible for Patreon because iOS is actually now the most used platform for communities on Patreon.”

Conte said that sticking to the old payment system or having individual creators shut off payments in iOS would incur a penalty from Apple affecting everyone:

“Apple is no longer supporting our older billing models after this November. Billing models like Charge Upfront, Non-charge Upfront, and Per Creation; and Apple has made it clear that if creators continue those billing models or disable transactions in the iOS app then Patreon is at risk of having the entire app removed from the App Store for all creators.”

He also said:

“I just want to say this is so bad, this is the worst. We actually reversed a decision a couple years ago to make the newest billing model mandatory. We reversed that decision specifically because we heard from creators that this newest billing model did not yet work for them. I want to make it really clear – this is not how we want to be rolling out changes and we would not roll out changes like this if it weren’t for these mandates from Apple.”

“Despite that, the Patreon team has built a great plan to mitigate the negative impacts on creators as much as possible over the next year. I have so much confidence in this plan.”

Patreon’s recent guidance on changes can be found here.