Mobile NFT platform Floor lets users buy NFTs in-app, but to do so it plans to absorb the 30% fee charged by Apple and Google.
Floor, like other NFT marketplace apps, aims to provide a single location to view, trade, and collect NFTs. Apple updated its policy last September to allow NFTs to be bought and sold through apps listed in the Store, though there was a significant catch.
As with non-crypto apps, the tech giant is demanding a 30% discount on in-app purchases from developers who earn more than $1 million annually through its store and 15% for those earning less.
Google has a similar cost structure. Approved app categories in Google’s Play Store now include games that offer NFTs as rewards, as well as crypto exchanges and wallets.
NFT marketplaces have largely avoided the fees by simply not allowing in-app purchases. For example, OpenSea only lets users view and browse their own NFTs through those offered on the platform. The app directs users to its website to actually buy and sell NFTs.
The founders of Floor – former executives at Robinhood and Venmo – hope that the ability to directly purchase NFTs will set it apart from the competition.
“Marketplaces like OpenSea can’t go mobile these days,” co-founder Chris Maddern told Blockworks in an interview. “The ‘marketplace’ exemption does not apply to NFTs and 30% on a peer-to-peer purchase is unfeasible.”
But when it comes to primary sales (from artist to collector), Floor believes the remaining 70% will be enough to keep his business in the black.
What in-app purchases look like on Floor
Floor raised $8 million in a Series A in June last year, in a round that included Crypto.com, Eberg Capital and 8th Man Ventures. The name refers to NFT “bottom prices”, the lowest value of tokens in a given pool.
The company hopes the inclusion of the 30% fee will lead to industry-wide pressure to cut Apple and Google’s profits.
In a statement, Floor said it is partnering with 10 prominent Web3 artists, including Vinnie Hager, to launch weekly drops available through in-app purchases.
Floor says the app, which launched last year in both Apple and Google app stores, has about 25,000 users. It provides support for NFTs in Ethereum, Polygon, and Solana. More support for other networks is expected in the coming months.
