Apple could cut off the customer from accessing services if there was a payment lapse but now, the company has come up with a new way of avoiding this immediate and direct cut-off. A ‘grace period’ has been introduced by Apple which will allow its users to have like a warning alert if their subscription is about to end.
Lapsed payments can take place due to many reasons such as changes in addresses requiring an update of the billing ZIP code, expired credit cards, corporate cards getting closed off and even credit cards that get disabled by the bank due to various reasons. With the new ‘grace period’ feature, the user can be able to find a way to pay after receiving the alert.
When a customer is cut off from subscription due to unavoidable circumstances, means that the developers were getting a loss and losing revenue because of a simple billing issue not because the subscriber wanted. An article by Developer mentioned that a billing-related issue will trigger a subscription to automatically enter a billing retry state where the App Store will attempt to recover the subscription.
On September 12th, 2019, Apple introduced the billing grace period for reducing customer churn and improving on the auto-renewable subscriptions. With the new grace period, users can continue accessing the app’s paid content while Apple awaits for them to work on the monetary issue. If the subscriber pays before the grace period is over, there won’t be any disturbances to the subscriber’s days of paid service.
Apple’s grace period is opt-in on the developer’s part that is it is enabled from App Store Connect. This is where developers manage their apps. This is good customer care relation and many developers ought to take the chances to retain its customers.
Google Play, however, had already started with the grace period in 2018 and Apple is just now catching up with this technology. Nevertheless, it’s better to be late than sorry. CEO of in-app subscriptions RevenueCat, Jacob Editing, the implementation difficulties may turn off some developers. Apple, however, is reaching out to the iOS market.
According to Sarah Perez, the tech company mentions that it will be collecting payment for either six or sixteen days depending on whether the subscription duration is weekly, monthly or yearly. Mr.Eiting says that the grace period on iOS would be a great feature for the users but sadly the fact that the developers have to opt-in and build server-side support shows that only a few apps will be able to support playing it.