Different Prices for the Same Service Depending on Whether Payment Is Made via App or Web [Heotdari Economy]

(31) In-App Payment Incurs Service Fee

Editor's NoteMany people thought they were engaging in smart economic activities to get better deals, but it often turned out to be a misstep. When consumers are deceived by corporate marketing or blinded by momentary gains and make wrong decisions, they end up suffering the consequences. We aim to examine economic activities where people have made mistakes by misjudging everyday situations and ended up on the wrong foot.

Yoo Min-jae (28), who was about to subscribe to KakaoTalk's 'Emoticon Plus,' noticed a discrepancy between the payment amount on his phone and the amount displayed on the web (PC) screen. Upon checking, he found that the mobile app payment was 6,900 KRW, while the web price was 3,900 KRW. Using an iPhone, Yoo asked his friend, who uses Android, how much they pay for 'Emoticon Plus.' His friend said it was 5,900 KRW.

Even when using the same service, the payment amount varies depending on whether the payment is made via computer web or mobile app, so comparison is necessary.

'Emoticon Plus' is a subscription service that allows users to search for and select emoticons based on desired situations or emotions. When paying via the web, a 1,000 KRW discount is applied, making the price 3,900 KRW. Moreover, the first month is free. In contrast, when paying via iPhone, there is no first-month free offer, and the payment price jumps to 6,900 KRW. The price difference between web and app also applies when purchasing individual emoticons. Emoticons that cost 2,000 KRW on the web are priced at 2,500 KRW on the app.

Purchasing e-books is another representative case where payment methods and prices differ between web and app. Yes24 and Aladin apply a system where users charge cash that can only be used within their platforms to purchase e-books, audiobooks, and promotional goods. A fee is added to the charged cash. When using the Apple app, an exchange rate of 1.2 times is applied, and for Android, 1.1 times. For example, when purchasing an e-book with 20,000 cash on Aladin, iPhone users pay 24,000 KRW, and Android users pay 22,000 KRW.

Services like Melon and YouTube also show price differences between web and app payments. A 30-day Melon Streaming Plus ticket costs 11,400 KRW when purchased on the web, but 15,000 KRW on the app. YouTube Premium prices differ across Android, Apple, and web platforms: Android is 11,900 KRW, Apple is 19,500 KRW, and web is 14,900 KRW. However, Android and Apple offer one month free, while the web offers two months free. Payments made via the web can also be linked and used on iPads and iPhones.

If you use a browser installed on your mobile device (Samsung Browser, Chrome, Safari, etc.) instead of the app, you can purchase at the same price as the web. However, for services like YouTube, you may be redirected to the in-app payment page, so it is necessary to check.

Consumers generally do not recognize the price differences caused by web and app payment methods. According to the '2023 Value-added Telecommunications Business Survey' released by the Ministry of Science and ICT, only 59% of app market users are aware of price differences depending on the app payment method. Awareness significantly decreases with age. While over 79% of teenagers and people in their 20s (based on age) recognize the difference, only 46.4% of people in their 50s and 44.7% of those in their 60s do.

The reason for the price difference between web and app payments is in-app purchase. In-app purchase refers to a system where payments for paid content such as game items or emoticons on mobile devices are made only through systems provided by app market operators like Google or Apple. Apple and Google take up to 30% commission from the payment amount for sales within their apps. As a result, some developers list mobile-only prices including the commission.

In response to this issue, in August 2021, the Korean National Assembly passed the world's first law banning mandatory in-app purchases (an amendment to the Telecommunications Business Act) to prevent forced imposition of up to 30% commission fees. In October last year, the Korea Communications Commission judged that Google and Apple still forced certain payment methods, violating the in-app purchase ban law, and announced plans to impose fines up to 68 billion KRW, including 47.5 billion KRW on Google and 20.5 billion KRW on Apple. However, the decision to impose fines on these companies has not yet been finalized. The Commission stated that Google and Apple immediately opposed and submitted a large volume of opinion materials, which prolonged the review process.