By Julie Clover
TikTok appears to be quietly offering some users the ability to buy “coins” online rather than through in-app purchases, bypassing the commission Apple receives for digital purchases.
As noted by David Tesler (via TechCrunch), TikTok is offering a limited number of TikTok app users the ability to purchase coins on TikTok.com rather than application. “Try recharging on tiktok.com to avoid in-app service fees,” the text reads. “You can save on service fees and gain access to popular payment methods.”
TikTok may be blocked from the app store next week Why? Looks like they're bypassing Apple's fees by asking users to buy coins using external payment methods pic.twitter.com/VG8ihvsRmv — David Tesler (@getdavenow) April 30, 2024
When you make a purchase on TikTok.com and select your purchase, an interface appears for you to use payment methods such as PayPal or credit/debit card. “Save about 25% with lower fees for third-party services,” the app suggests. The purchasing workflow can be completed entirely within the TikTok app without the need for in-app purchases.
TikTok Coins are used by users as a way to provide “gifts” to creators. Users pay real money for a certain number of coins, and these coins are used for small gift emojis that can be given to the creators. TikTok says the gifts are used to determine the number of “diamonds” awarded to content creators, and the diamonds can be exchanged for cash. A TikTok coin is worth about half a diamond, and 100 diamonds are worth 50 cents, so TikTok collects quite a bit of money during the conversion.
Apple requires in-app purchases to be used for digital goods. and services, and TikTok “coins” appear to be considered a digital good. If TikTok does offer customers the ability to buy coins without in-app purchases, as shown in the screenshots from Tesler, then TikTok is violating Apple's App Store rules.
TikTok coins will likely be considered tips, and Apple has forced other major Social networks such as Facebook use in-app purchases as a feature to tip creators. What TikTok is doing is actually similar to the direct purchase options that Epic Games added to the Fortnite app back in 2020. The move ultimately led to a ban on the Fortnite app and a years-long legal battle.
Most TikTok users can only purchase coins through the in-app purchase interface, and the ability to make purchases directly from TikTok using a credit or debit card is purportedly a feature available only to a small number of users. Perhaps this feature is only available to those who have spent a lot of money on coins in the past.
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