With iPhone OS 3.0, Apple launched the “In App Purchase API”. Clients and potential clients at Sequence often ask us what this means for the applications they plan to develop and specifically their revenue share. We’d like to help clarify a few things.

Options, options

Apple’s In-App Purchase API is one option among many. Technically, we’ve seen five ways to process an application credit card transaction on an iPhone.

Using Apple’s In App Purchase API in the application
Launch a commerce website in the iPhone Safari browser from the application
Using a card payment vendor’s API in the application
Require the user to set up their payment information in browser and process using stored information
Launch a commerce website within the app using a borderless Safari window known as a “web view”

Figure 1 is a simple decision tree I put together (with edits from Stuart Williams at Pervasent) outlining when to use the different models.

1. Apple’s In App Purchase API

Apple’s API is meant for purchase of content, functionality or services for use within an application like digital books or additional game levels. For example, Gokivo navigator allows in-app purchase for a month of turn-by-turn map service for $9.99.

• If your application is designed purchase goods or services for use outside the application - such as a chicken fajita burrito with extra guacamole or a shiatsu massage – this API isn’t for you.
• Apple keeps 30% of any transactions that they process – similar to the paid app revenue split

• Apple handles all of the fraud risk – no PCI compliance check, etc.
• Native authorization - users only need to enter their iTunes password to confirm purchase (similar to the iPhone app store)

IN A NUTSHELL

The launch of the In App Purchase API has been a two-edged sword for developers. While it provides a seamless user experience, it comes at considerable revenue-sharing cost.

2. Safari commerce website

On the other end of the integration spectrum is a commerce website launched in the iPhone Safari browser. This isn’t actually in-application commerce as the transaction occurs in Safari, but it is at least still on the same device. Services like PayPal can be implemented in this fashion. We are currently working on an application that allows users to download and consume digital media - the client isn’t interested in giving up 30% of the transaction, nor charging for the application. In discussion with Apple, they recommended we launch a commerce website in Safari.

The Shortcovers reader app is another example of an application that uses this model to allow users to buy eBooks for their eBook reader application.

• Most disruptive user experience – the native app closes and safari opens with the commerce site
• Cheapest to implement if you already have an ecommerce site
• Create an iPhone-compatible version of your checkout process if you don’t already have one
• Make sure to link back and relaunch your native app after completing the web transaction

IN A NUTSHELL

The quickest to implement if you already have an iPhone Safari-compatible mcommerce website, and want to avoid revenue sharing with Apple. Unfortunately it is also the most distruptive user experience.

3. Integrated card payment API

For those who have the resources to integrate a card payment vendor’s API into the native app and shepherd it through PCI compliance testing, this method provides a very smooth, reliable experience. The iPhone ordering application we designed with Chipotle uses this method.

• PCI standards dictate a number of data security measures such as not storing any user financial data on the client.
• Possibly the most complex and time-consuming to implement
• User experience nearly as simple as the native API for repeat purchases, slightly more involved setup
• No revenue sharing with Apple
• Not an option for in-app content (unless you’ve got a good business development juice)

IN A NUTSHELL

Probably the hardest to implement, but a great user experience and no Apple tax.

4. Safari setup, in-app transaction

This is a hybrid model that merges web-based account registration with native transaction processing.

Amazon, for example uses this model in their iPhone shopping application. As a side note, Amazon’s 1-click® implementation is seamless, but feels a bit lax on security.

• No revenue sharing with Apple
• Not an option for in-app content (unless you’ve got a good business development juice)
• We haven’t implemented this model yet so we’re not exactly clear about the conditions when Apple will allow this.

IN A NUTSHELL

About as complex as integrating a card payment API. A good transaction experience, but a little bumpy on the account registration. No Apple tithe.

5. Commerce website in an app web view

This is essentially the same implementation as option 2, but with the commerce website loading into the application instead of in Safari.

• Technically not much more effort than launching Safari, and feels much more integrated
• No Apple revenue share
• Not an option for in-app content and rarely an option for other content (unless you’ve got a good business development juice)
• Make sure to link the user back into the native app after completing the transaction in the web view

IN A NUTSHELL

Best bang-for-the-buck implementation if you can convince Apple to allow it.

Conclusion

Each of these models has its pros and cons. But more importantly, Apple’s terms and conditions as well as Payment Card Industry (PCI) security standards restrict how and when you can use them. The final and most important piece of advice we can give is that Apple is often open to negotiation regarding terms and functionality. These guidelines are based on our experience working with clients and Apple designing numerous applications, but they are by no means absolute. Of course - depending on how important or Apple deems your product - your mileage will vary.

There is no one-size-fits-all solution when it comes to implementing your mcommerce functionality on the iPhone. This primer is our effort to help clarify options and open up discussion amongst iPhone developers. We welcome your feedback and would love to hear your experiences.

I may have mentioned before that my mom is very cool and hip in all sorts of ways including technology and the internet. Gmail, iPhoto, flickr, Time Machine backups… she uses them all. She also uses me as her mac / internet helpdesk. So it was only a matter of time before I received this help request from her:

I am uploading a video with sound on You tube w/470mb. After about 2 hours of “loading” it stops with “problem loading page”. What’s the problem kaya?

How to optimize your video for YouTube upload using Apple iMove on a Mac

YouTube has two main video file upload limitations: no more than 10 minutes per video and no larger than 100MB per video. If your video is too large, YouTube won’t accept it after you’ve uploaded it. But my mom ran into another problem before she even got to the rejection - uploading a 470 megabyte file takes forever. And chances are, her upload connection to YouTube was disrupted sometime in those 2 hours of loading.

So before she tries to re-upload, she needs to make the file smaller. (Technically, Youtube works best when the aspect ratio of the movie is to 320 x 240 pixels at QVGA) You can do this using a video editing application - one comes already installed on your mac called “iMovie”. The application icon is shown here on the right.

1. Find and launch the iMovie application
2. Choose “Start a new project”
3. Import your original clip (go to File > Import… from the application menu)
4. Export your clip:
   a. go to File > Share…
   b. Select the “Quicktime” option from the icons at the top of the dialog window (not Mail, Homepage, Videocamera, iDVD or Bluetooth)
   
   c. From the “Compress movie for:” dropdown, select “Expert Settings”
   d. Click the “Share” button
   e. A new window will pop-up with more options
   
   f. Name your movie and choose where you want it to be saved on your computer
   g. From the “Export” dropdown, select “Movie to MPEG-4″
   h. From the “Use:” menu, select “Streaming - Medium”
   i. Click “save”

Before you try and upload this new file to YouTube, make sure it is 100MB or less. If it isn’t, I suggest you crop your movie until it is. Alternately, you can try for a lower quality video by resaving using the steps above, but instead of choosing “Streaming - Medium”, choose “Streaming - Low” from the final dialog box.

There are many other things you can do to your movie while in iMovie - shorten it if it is too long, edit out unwanted sections of your movie, add titles and subtitles or a soundtrack. For that tutorial, you’ll have to wait until my mom asks for it.

Here is my saga:

I have 58 frollowers on twitter so at 9:00 PM PST I tried a wee experiment. live improv standup comedy. problem was, I couldn’t get anyone to wave.

I mean srsly, you’d think that twits and twats everywhere would be up for a little group-choreographed hands-in-the-air send-a-wave-around-the-stadium action. come join and and post this message to twitter:

anybody listening? I’d like to start a ‘wave’ across twitter. copy this twit and pass it on.

Now I’m enlisting the facebooksters and the diggsters to help. Things you can do:

1. post this to your twitter feed:

anybody listening? I’d like to start a ‘wave’ across twitter. copy this twit and pass it on.

2. digg this story on digg:
Twitter wave not spreading.

This illustration from Portfolio’s Daily Brief succinctly captures my thought process today.

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Good creative interwoven with product placement. Like giving candy to babies.

Uniqlock

Cadbury Gorilla

When I was in college, I worked at the local Berkeley REI to earn enough money (gear) to fuel a trekking pilgrimage to Tibet. Among other fun areas, I worked in the backpack department, where I learned from the masters about fitting and wearing backpacks. Backpack fitting requires knowledge of anatomy, ergonomics, packing physics, trail dynamics and bodily hygiene - none of which I had.

When my baby arrived, I had no idea that any of that would matter.

Nearly 18 months and 5 baby carrying devices later I realize it would have been handy if someone pointed me at a list of baby-carrying options. What should you look for in a baby carrier, sling, backpack or carryall?

The BMW Gina Light takes the construction paradigm of the eskimo kayak, applies it to the automobile and wraps it in advanced material fabric. I love it. The construction allows for much more organic shapes and anthropomorphic actions like the way its headlights open like an eyelid or it’s hood feels like a sexual orofice.

From Radst3r

When I was working at My Yahoo, we noticed a statistical pattern in the ‘most emailed photos’ that showed up in the ‘popular photos’ module. Of the 3 photos, 2 were usually pictures of women’s breasts or butts. The third was a photo of a baby furry animal. Sometimes there was one woman part and 2 baby furries.

Obviously it was because men were generally more active at sending girlie photos to their mates than the women were at sending cutsie photos.

So what is it with baby animals that make them viral? Looking at them obviously gives some people as much pleasure as looking at women’s body parts. They (or we as adults) are designed to trigger (or have triggered) strong emotions at the sight of a furry baby animal. Cuddle. Stroke. Feed.

• huge head
• smooth fur
• huge feet

Now if I could somehow tap this psychological response in graphical design… I would have…. a typical product ad.

See more polar bears, big and small.