# iOS External Payments Ruling: A New Path to Higher Margins?

- Link: https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/
- Published: 2025-05-14T16:38:17+01:00
- Author: Andy Carvell

###     Table of Contents

 * [What happened?](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#what_happened)
 * [Phiture’s take](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#phitures_take)
 * [Potential benefits of using external payment flows](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#potential_benefits_of_using_external_payment_flows)
 * [Potential caveats to keep in mind](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#potential_caveats_to_keep_in_mind)
 * [What about the EU?](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#what_about_the_eu)
 * [Getting started](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#getting_started)
 * [Additional Reading](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#additional_reading)

## What happened?

A landmark U.S. court ruling has changed how iOS apps can handle payments, but only
for apps listed on the U.S. App Store.

This update stems from the long-running Epic Games v. Apple antitrust case. In April
2025, a U.S. federal judge ruled that Apple must fully comply with a 2021 injunction,
formally allowing developers to guide users to external payment options and preventing
Apple from collecting commissions on those external transactions.
 The ruling also
limits Apple’s ability to restrict messaging or the placement of outbound payment
links. ([Reuters](https://www.reuters.com/sustainability/boards-policy-regulation/apple-asks-us-appeals-court-pause-ruling-epic-games-case-2025-05-08/),
[Engadget](https://www.engadget.com/big-tech/court-orders-apple-to-stop-collecting-fees-for-purchases-made-outside-the-app-store-110036376.html),
[Wikipedia](https://en.wikipedia.org/wiki/Epic_Games_v._Apple))

Key changes are:

**These rulings only apply to iOS apps published on the US storefront.**

 * **External payments are now allowed:** Apps can direct users to a checkout flow
   outside the App Store.
 * **No Apple commission on external payments:** The usual 15-30% fee no longer 
   applies to purchases made outside the app.
 * **No design restrictions:** Apple can’t control the design, placement, or content
   of external payment links or buttons.
 * **Limited interference from Apple:** A neutral notice is allowed before users
   leave the app, but nothing more. Furthermore, you can now communicate freely 
   with your users about external payments and link to them directly in your messaging(
   including push notifications, in-app messages, and all other channels).

 

Apple has updated its [App Review Guidelines](https://developer.apple.com/app-store/review/guidelines/#link-to-other-purchase-methods)
to comply with the ruling:

![](https://phiture.com/wp-content/uploads/2025/05/CleanShot-2025-05-14-at-14.45.14.
png)

Apple’s [App Review Guidelines](https://developer.apple.com/app-store/review/guidelines/#other-purchase-methods)

 

## Phiture’s take

This ruling could mark a significant shift in how app monetization is handled on
iOS.** If your app has a significant user base in the U.S.**, it presents an opportunity
to increase your margins and gain more control over your monetization flow. But 
there are important trade-offs to weigh.

If you’re interested in exploring 3rd party payments, we recommend taking an experimental
approach. Use tools like RevenueCat or Superwall to A/B test external payment flows
for a subset of your U.S. users. Measure conversion and retention rates and proceeds
closely to evaluate viability and profitability.

If you already use providers like Stripe or Paddle, integrating external flows will
be smoother. If not, be aware of the additional work this change might bring, including
managing taxes, refunds, and chargebacks yourself.

 

## Potential benefits of using external payment flows

External payments can reshape your revenue strategy, but only if implemented with
care. However, these benefits come with both technical and behavioral risks that
need to be understood before rolling out at scale.

Potential benefits:

 * **Higher margins:** Skip the 15-30% Apple fee entirely.
 * **Faster payouts:** Unlike Apple, some providers offer payouts within days or
   even instantly, which is useful for reinvesting into your marketing motions.
 * **Greater flexibility:** Update pricing tiers, introduce bundle offers, localized
   pricing, or discounts instantly without waiting for app review.
 * **Custom UX:** Fully control your checkout design and flow to optimize conversion.
 * **Reduced churn and higher LTV (potentially):** Subscriptions managed outside
   Apple are less visible to users and may be harder to cancel.

[[

Examples of app-to-web checkout. Images courtesy of: Spotify, Superwall, RevenueCat

 

## Potential caveats to keep in mind

Of course, the trade-off is complexity. Moving payments outside of the iOS ecosystem
may deter some users, introduce new compliance responsibilities, and reduce transparency
around cancellations and refunds. These changes must be managed carefully, especially
during A/B testing and early experimentation.

While attractive on the surface, external payment systems introduce complexity and
conversion risk:

 * **Impact on conversion:** Redirect warnings and the unfamiliar flow might deter
   users. Some users prefer the security of Apple’s native system and central subscription
   management. As well as increased friction, the extra unfamiliar step may deter
   impulse purchases, particularly among first-time users.
 * **Operational overhead:** Managing your payment system means handling taxes, 
   fraud, and support. You can use payment service providers to outsource this.
 * **Provider fees:** Stripe, Paddle, and others also charge fees, albeit much less
   than Apple.
 * **Support implications:** Users who encounter billing issues will reach out to
   your team, not Apple. Make sure support workflows are prepared.

 

## What about the EU?

The U.S. court ruling does not apply to apps listed on the EU App Store. However,
the Digital Markets Act (DMA) already compels Apple to allow external payment options
in the EU. That said, Apple is taking a different approach in this market:

 * Apple shows a **warning label on App Store listings** of apps that implement 
   external payment links.
 * This warning is shown before the user even downloads the app, potentially deterring
   them from proceeding.
 * Phiture expects this messaging to have a **significant negative impact on conversion
   rates**, especially for subscription-based or premium apps.
 * Fees like Apple’s Core Technology Fee (CTF) or App Store commissions might still
   apply.

While external payments may still offer margin benefits in the EU, these warnings
will likely offset those gains by hurting user acquisition. As in the U.S., we recommend
testing carefully and monitoring conversion closely before rolling out changes at
scale.

[[

Image credits: [Victor Maric via X](https://x.com/maric_viktor/status/1922006170601939221?s=46&t=8kwp0OKakE6Q5WBwJMWBSw)

 

## Getting started

If you’re using RevenueCat or Superwall, both have published updates to support 
external links within paywalls. Start with an experimental approach:

 * Test with a **limited U.S. segment**.
 * Compare conversion vs. Apple IAP.
 * Monitor net revenue, churn, and support tickets.

 

If you don’t use any of these, but want to get started, here is what you can do:

 * Review technical documentation from your billing provider.
 * Build an A/B test framework using RevenueCat, Superwall, or internal tooling.
 * Launch a U.S.-only pilot.
 * Analyze behavioral, revenue, and support data.

 

## Additional Reading

RevenueCat: [What Epic vs. Apple’s ruling means for developers, PMs, and marketers](https://www.revenuecat.com/blog/growth/apple-anti-steering-ruling-monetization-strategy/)

RevenueCat: [The pros, cons, and “gotchas” of the new US ruling on external iOS payments](https://www.revenuecat.com/blog/growth/external-ios-payments-pros-cons-gotchas/)
Paddle: [The Apple vs. Epic ruling: A new era of app monetization](https://www.paddle.com/blog/apple-vs-epic-app-store-changes)
[Vivek Ginotra’s take on LinkedIn](https://www.linkedin.com/posts/vivekgirotra_epic-games-vs-apple-ruling-what-it-really-activity-7323787431634251779-nQ6r)

Table of Contents

 * [What happened?](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#what_happened)
 * [Phiture’s take](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#phitures_take)
 * [Potential benefits of using external payment flows](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#potential_benefits_of_using_external_payment_flows)
 * [Potential caveats to keep in mind](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#potential_caveats_to_keep_in_mind)
 * [What about the EU?](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#what_about_the_eu)
 * [Getting started](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#getting_started)
 * [Additional Reading](https://phiture.com/blog/ios-external-payments-ruling-a-new-path-to-higher-margins/#additional_reading)