Coinbase doesn't want to pay Apple for in-app NFT transfers

Coinbase removed the ability for users to send NFTs in its iOS app because Apple sees crypto "gas" fees as something that should be paid with in-app purchase — requiring the fee.

The app update was withheld until Coinbase removed the feature or implemented a way for users to pay gas fees with in-app purchases. Coinbase claims that such a system is not possible since those transactions are paid in crypto coin, a currency Apple does not accept.

Coinbase has turned to Twitter to air its frustration about Apple's demands. Apple's App Store guidelines about NFTs are clear, and have been since October 24. It specifies that NFT transfers must fall into in-app purchases.

Apple's App Store guidelines section 3.1.1 states (emphasis ours):

Apps may use in-app purchase to sell and sell services related to non-fungible tokens (NFTs), such as minting, listing, and transferring. Apps may allow users to view their own NFTs, provided that NFT ownership does not unlock features or functionality within the app. Apps may allow users to browse NFT collections owned by others, provided that the apps may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.

This rule exists because nearly every operation on blockchain is a transaction. Moving NFTs, mining, and other tasks are associated with transaction fees called "gas," which users pay for. This isn't entirely dissimilar from apps offering in-app tokens to perform tasks like sending messages or performing edits.

Fair or not, the rule is laid out clearly and Coinbase was in violation. Until Coinbase follows the rule and adds in-app purchases for transferring NFTs, the feature will not be allowed on iOS. The app has been approved by Apple now that the feature has been removed.

Apple's claim is that the gas fees required to send NFTs need to be paid through their In-App Purchase system, so that they can collect 30% of the gas fee.
— Coinbase Wallet (@CoinbaseWallet) December 1, 2022

Apple's 30% transaction fee is collected for any app purchase, in-app purchase, or initial subscription. There are exceptions, like subscriptions dropping to a 15% if the account is subscribed for a year, or companies that earn less than $1 million only get charged 15%.

Crypto firms have previously said Apple's rules for cryptocurrency and NFTs make working on the App Store impossible.

Apple's App Store guidelines for fees have been a hot topic of discussion for years. However, despite battles with Epic and other large entities, governments haven't ruled Apple's fee as anti-competitive or illegal.

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7 Comments

robin huber 4025 comments · 22 Years

About 1 year ago

No problem. Enjoy the Android store.

danox 3393 comments · 11 Years

Apple shouldn’t allow any of those Ponzi schemes in the AppStore let them do everything via a website.

DAalseth 3033 comments · 6 Years

JP234 said:

What I don't get is why anyone would buy an NFT. Or any cryptocurrency either, for that matter. These are derivatives with no inherent value, produce nothing, and can't be used for anything. They're just a vehicle for the "greater fool theory." You, the fool, overpay for some worthless item, and then starts the desperate search for the "greater fool," who is willing to overpay more than you, to sell it to.

This is not a strategy for long term wealth building. In the words of the late shadow president, Nancy Reagan, "Just Say No." Then go out and find great companies with a history of growing earnings and increasing dividends. Like Apple or Microsoft or Lockheed Martin.

Agreed. When Bitcoin first appeared I looked into it. I soon realized they were imaginary bags of nothing that people held while they looked for a sucker to buy them. The sad part is that blockchain is a good technology. Unfortunately it’s been so tainted by fraudsters and the greedy stupid, that I doubt that it will ever be used for anything good.

larryjw 1036 comments · 9 Years

DAalseth said:

JP234 said:

What I don't get is why anyone would buy an NFT. Or any cryptocurrency either, for that matter. These are derivatives with no inherent value, produce nothing, and can't be used for anything. They're just a vehicle for the "greater fool theory." You, the fool, overpay for some worthless item, and then starts the desperate search for the "greater fool," who is willing to overpay more than you, to sell it to.

This is not a strategy for long term wealth building. In the words of the late shadow president, Nancy Reagan, "Just Say No." Then go out and find great companies with a history of growing earnings and increasing dividends. Like Apple or Microsoft or Lockheed Martin.

Agreed. When Bitcoin first appeared I looked into it. I soon realized they were imaginary bags of nothing that people held while they looked for a sucker to buy them. The sad part is that blockchain is a good technology. Unfortunately it’s been so tainted by fraudsters and the greedy stupid, that I doubt that it will ever be used for anything good.

That has been my sense also. Except, I don’t agree that blockchain as used by Bitcoin, is a good technology. No question that the overhead incurred for fiat currencies is far from trivial, I still find the cost of mining Bitcoins makes it less than a good technology.