If I use the PayPal gateway in my iPhone app, will Apple approve it?
Generally speaking, yes, your app will be rejected. According to section 11.2 of the App Store Review Guidelines for iOS (Login Required) any app that doesn't use In-App purchase will be rejected.
11.2 Apps utilizing a system other than the In App Purchase API (IAP) to purchase content, functionality, or services in an app will be rejected
Additionally, note that any purchase of real world goods or services is not allowed as per section 11.3. I suggest reading the whole document, or at least section 11 (and 20 if it's a charity app). That should give you a pretty good idea of what's allowed and what's not.
According to section 11.3 above you must use other payment providers for services or goods used outside of the iphone. Which means you can use PayPal or other payment providers.
Physical goods are the obvious scenario, but it is not limited to this only. For example if you are selling a service which is not delivered by the mobile device, for example a dating service or a an help desk service which is delivered outside of the phone.
I have experience with iPhone apps that are approved by Apple and are not using IAP.
For example a gift cards app (Virtual gift cards used for physical stores) http://itunes.apple.com/us/app/istash-cards/id486722915?mt=8 This app uses ZooZ SDK, which allows credit card and paypal processing outside of IAP
After 4 months have passed I just want to inform you about the outcome of the discussed topic (at least for our company) :
Since this questions has some meaning for our business I directly asked Apple ([email protected]) in October '11 before starting to implement the paypal API into our App:
Dear review team,
I have a question regarding the use of an external payment mechanism ( paypal gateway for iOS) inside an app:
we plan to create a social network app, which informs users about events,/ parties in their neighborhood as well as provides some sort of communication between the users of the app.
We also have the idea to sell some tickets for some of the events (with the agreement of the organizers) using the paypal gateway for iOS.
Now my question is:
Since event tickets are "physical goods" there are no restrictions regarding the use of the paypal gateway, correct ?
(It's not allowed to implement the "In Purchase Api" for this purpose, since the sold products wouldn't be 'virtual goods', right ?)
Thank You for Your support
..
After 6 days we received the following answer:
Dear ...,
Thank you for contacting the App Review team. Apple is not able to provide pre-approval for proposed application submissions or to review and comment on application concepts or code. That said, apps that use In-App Purchase for physical goods, are not appropriate for the App Store. It would be appropriate to deliver the purchase of physical goods through external purchase mechanisms. (accentuation by me)
Please review the App Store Review Guidelines against the specific application you wish to develop. The App Store Review Guidelines can be found at https://developer.apple.com/appstore/resources/approval/guidelines.html.
In addition, we strongly recommend reviewing the “iOS Developer Program License Agreement,” “iOS Human Interface Guidelines,” and “In App Purchase Programming Guidelines” to ensure that your application is in compliance with all documentation.
For tips on preparing your application for submission and other information about App Store approval process, visit: http://developer.apple.com/iphone/appstore/approval.html.
We look forward to reviewing your app.
J..
App Review
So we got the green light to implement our intent.
On December 13 we uploaded our App to the App Store.
Within 4 days we received the approval from Apple "ready for sale"!
So at least for our kind of business (sales of event tickets) it's possible to use the paypal API inside an iPhone App.
Sorry for insisting again on this question. But I cannot agree with Moshe, that the "App Store Review Guidelines for iOS" would forbid purchasing physical goods with an external payment mechanism (as Paypal gateway).
sec. 11.2 urges developers to use In App Purchase API (IAP) for selling "virtual goods".
sec. 11.3 forbids selling of "physical goods" using that IAP.
So I see no forbidance of using an external payment mechanism for selling "physical goods", right ? Indeed there are some apps using the paypal gateway for selling some sort of physical goods like "LEDwatchapp" http://itunes.apple.com/app/ledwatchapp/id410279039?mt=8 or "yorder" http://m.yorder.it/ (the latter I haven't tried but it was recommended from the paypal website).
I also plan to implement this paypal gateway in our app to sell some event tickets. That's why I'm very interested on this discussion. Thank's for your comments.