Apple now offers ‘grace period’ for lapsed App Store subscriptions

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Updated: September 14, 2019 7:45:09 PM

The customer will have access to all the paid content of the app during this specific period of time. And if the subscription is renewed with the specific amount of time, then the customer would not face any interruption in services.

Apple, Apple subscription, app subscription, grace period, iPhone, iPad, iPhone 11, iPhone x, app storeThe grace period that Apple will be offering will be of either six or sixteen days (REUTERS)

Apple has changed how the subscriptions in its app store work. Much like Google Play, which has grace periods for customers with subscription since 2018, the iPhone maker is now implementing that to reduce subscriber loss.

Earlier, any lapse in payment would have barred the customer from using the subscription-based features of the app, making it more difficult for Apple to reacquire the business. These payment lapses could have occurred due to several reasons like expired or disabled credit card and many more – other than the customer wanting to end their subscription.

But now, the company and its developers will offer a ‘grace period’ for the customers with auto-renewable subscriptions, which will leave the company with more time to collect payment. This Billing Grace Period can be activated from App Store Connect, from where one can manage their apps.

To enable this, you can go to “My Apps” in the toolbar click on the ‘Features’ option, and then go to ‘In-App Purchases’. There search for the new Billing Grace Period section and click “Turn On”.

While the feature will decrease the involuntary subscriber churn for the developers and Apple, it might also cause irregular billing events which in turn will have an impact on the customer’s subscription status.

The grace period that Apple will be offering will be of either six or sixteen days – depending on the kind of subscription the customer is having – weekly, monthly or otherwise.

The customer will have access to all the paid content of the app during this specific period of time. And if the subscription is renewed with the specific amount of time, then the customer would not face any interruption in services.

However, if the user re-subscribes to the app after 60 days, the developer will receive 70 per cent of the subscription price until the one year of paid service passes. After the first year, developers to retain 85 per cent of the subscription cost. Subscription revenue is critical to developers as the App Store has shifted away from paid downloads toward recurring revenue streams.

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