New U.S. ruling on external iOS payments

TL;DR: The 30% savings are real, but so are the new responsibilities. 

After a deep hibernation, the mobile market has been shaken awake. On April 30, 2025, the judge in Epic v. Apple banned Apple from charging any commission on purchases made outside the App Store. 

At first glance, it looks like a clear win for app developers. Finally breaking free from the Apple tax. While this ruling does create exciting new opportunities, especially around external iOS payments, it also introduces challenges that aren’t getting nearly enough attention.

Is external payment processing really as transformative as everyone thinks it is? Or are we missing something important that could change the math?

Let’s break down what this ruling means for your app – the good, the bad, and everything in between.

The seeds of rebellion: how this all began

Remember that time in 2020 when Fortnite suddenly disappeared from the App Store? That wasn’t an accident. Epic Games deliberately picked a fight with Apple by adding their own payment system to Fortnite, bypassing Apple’s 30% cut. 

Fortnite is now gone from the App Store https://t.co/MWu325FAWQ

— Wario64 (@Wario64) August 13, 2020

Apple kicked them out, and Epic was ready with a lawsuit the same day. Pretty obvious they planned the whole thing, right?

The first U.S. court battle had mixed results. The judge rejected Epic’s claim that Apple was a monopoly but ruled Apple couldn’t block developers from telling users about other payment options. Apple made very few changes in the US.

In Europe, regulators pushed harder with the Digital Markets Act. Apple allowed external links but add a 27% fee. They also added warning screens to discourage users from leaving the App Store. 

→ Read about alternative payments in the App Store

Epic filed a new U.S. case in March 2024, claiming Apple was violating the original order. The judge agreed and ruled in Epic’s favor.

We will return Fortnite to the US iOS App Store next week.

Epic puts forth a peace proposal: If Apple extends the court's friction-free, Apple-tax-free framework worldwide, we'll return Fortnite to the App Store worldwide and drop current and future litigation on the topic. https://t.co/bIRTePm0Tv

— Tim Sweeney (@TimSweeneyEpic) April 30, 2025

The new ruling: what Apple can’t do anymore

The court’s ruling takes effect immediately with no grace period. Here’s what Apple can’t do anymore in the U.S.:

1. No more fees on external purchases. They can’t charge you a penny for transactions that happen outside the app, period. 
2. No more design restrictions. Remember those bland, generic links Apple forced developers to use? Now you can design your payment buttons however you want. Bright colors, animated arrows, whatever gets users to click.
3. No more “scare screens”. Apple loved throwing up those ominous warnings about the dangers lurking outside their ecosystem. Now they can only show a neutral message when users leave the app. 
4. No more link limitations. Previously, Apple restricted how many links you could add and where. Those restrictions are gone.
5. No more tracking requirements. Apple can’t force developers to report external purchases or audit their sales outside the app. 
6. Dynamic links are allowed. This is huge for user experience. You can now use links that bring customers directly to a specific product page with their account info already loaded.

Apple has updated their App Store Guidelines to reflect these changes, stating they “strongly disagree with the decision” and will appeal.

The good, the bad, and everything in between

The good stuff

1. Complete payment freedom. No more forced commissions means you keep significantly more revenue from each transaction. For subscription apps especially, this could transform your profit margins overnight.
2. Direct customer relationships. You’ll finally own the complete customer journey and data. No more mysterious subscribers who you can’t email directly or understand fully.
3. Flexible pricing models. Want to offer annual-only plans? Special bundles? Introductory rates? You can implement pricing strategies that were impossible within Apple’s system.
4. Cash flow advantages. With services like Stripe or Paddle, you’ll get paid within days instead of waiting 60+ days for Apple’s payment cycle. This means quicker reinvestment into growth.
5. Independence from dev accounts. If Apple ever suspended your developer account, your existing customers and revenue stream would remain intact, since subscriptions wouldn’t be tied to the App Store.

The bad stuff

1. You’re on your own for everything. Apple handled tax compliance, fraud prevention, chargebacks, currency conversion, and customer payment support. Now that’s all your responsibility. 
2. Tax compliance nightmare. You’ll need to handle sales tax in every U.S. state where you sell (each with different rates and rules), not to mention international VAT requirements if you sell globally.
3. Payment processing costs. Though you’re saving on Apple’s commission, you’ll pay 2.9%+ for payment processing, plus additional fees for international transactions and disputed charges.
4. Lower conversion rates. Apple’s in-app purchase flow is incredibly smooth – just two taps with Face ID and you’re done. External payments add friction that will inevitably reduce conversion rates. 
5. Increased fraud and chargebacks. Payment processors like Stripe may shut down accounts that have high refund or chargeback rates, which are much more common with external payments than with Apple’s protected system. 

Everything In between

1. Attribution challenges remain unsolved. If you rely heavily on paid user acquisition, this ruling doesn’t solve the attribution problem. It’s still difficult to connect ad spend to revenue when using external payment systems. 
2. Apple will adapt their strategy. Don’t assume Apple is just going to accept losing billions in revenue. They’ll likely revamp their entire business model, potentially:
   

• Lowering overall commissions to make external payments less attractive
• Creating new premium developer tiers with special benefits
• Implementing revenue-based fee structures (higher earnings = higher fees)
• Tightening app review criteria for apps using external payments
  

3. Trust and security perceptions. Users trust Apple’s payment system. Moving them to external payments means they need to trust your brand enough to enter payment details on a website. This could particularly impact smaller, lesser-known apps.
4. New moderation challenges. Apple may find other ways to control the ecosystem, potentially through stricter moderation on other grounds or by creating new review guidelines targeting apps that use external payments. 
5. The merchant of record question. For many developers, using a Merchant of Record service like Paddle will make more sense than handling everything themselves, but this adds another layer of cost. 

If you’re smart about implementing external payments, the potential upside is significant – but it’s not the automatic 30% revenue boost that some are celebrating. It requires careful planning, solid infrastructure, and an understanding of the true costs involved in payment processing outside of Apple’s ecosystem.

How developers are responding

The response from the industry has been lightning-fast – everyone’s rushing to take advantage of this new freedom.

Spotify didn’t waste any time either. They’ve already submitted an app update to Apple with external payment links for U.S. users. Apple has now approved this update, allowing Spotify to show pricing information and external iOS payment links to U.S. users.

Patreon is also gearing up to release a new version of their app, allowing creators to receive payments directly without Apple’s cut. For a platform that’s all about maximizing earnings for creators, eliminating the middleman fee is a major boost to their core value proposition.

Stripe has already published new documentation specifically for U.S. developers who want to process payments for digital goods outside of apps. They’ve been handling this in the EU market (where similar rules were implemented earlier), so they’re well-positioned to help developers make the switch.

Epic is also capitalizing on the moment by announcing new developer-friendly options for their own store: “Starting in June 2025, for any Epic Games Store payments we process, developers will pay a 0% revenue share on their first $1,000,000 in revenue per app per year, and then our regular 88%/12% revenue share when they earn more than that.“ 

With major players moving so quickly, smaller developers are sure to follow. The gold rush to implement external payment options has officially begun.

What’s the real takeaway here?

This ruling represents a fundamental shift in the mobile app economy but one that comes with real tradeoffs.

The biggest winners will likely be established apps with existing web infrastructure and well-known brands. Companies like Match Group, Spotify, and Netflix have the resources to build robust payment systems and the brand recognition to maintain user trust outside Apple’s ecosystem. 

For smaller developers, the calculation is more complex. The administrative burden of managing payments independently might outweigh the commission savings, especially when factoring in lower conversion rates.

The mobile app ecosystem isn’t suddenly “free” – it’s just shifting from a model with a clear, predictable cost (Apple’s commission) to one with more hidden complexities and variable expenses. Understanding these nuances is crucial for making strategic decisions that truly benefit your business in the long run.

For users, the experience will become more fragmented. Some will appreciate the potential price savings, while others will miss the simplicity and security of Apple’s unified payment system. The companies that find the right balance between savings and seamless user experience will be the true winners in this new landscape.

FAQ

Does this ruling apply worldwide or just in the U.S.?

This ruling currently applies only to apps distributed in the U.S. App Store. Other regions like the EU have their own regulations (such as the Digital Markets Act) with different requirements. Developers should maintain separate implementations for different regions.

When does this ruling take effect?

The court’s ruling takes effect immediately with no grace period. The judge emphasized that “this is an injunction, not a negotiation” and that there are “no do-overs.” Apple has already updated its App Store Guidelines to reflect these changes.

Can I still offer in-app purchases alongside external options?

Yes. You can offer both in-app purchases through Apple’s system and external payment links. This dual approach lets users choose what they’re comfortable with while you test which option performs better for your business.

Will Apple reduce their commission rates in response?

Apple has stated they “strongly disagree with the decision” and “will appeal.” While they may adjust their business model, it’s too early to predict specific changes. Some analysts believe they might lower overall commission rates to make external payments less attractive.

Do I need special approval from Apple to implement external payments?

No. Unlike previous external payment implementations that required special entitlements and approval, this ruling prohibits Apple from imposing such restrictions. You can now implement external payment links without Apple’s permission.

How should I handle tax compliance for external payments?

This is one of the biggest challenges. You’ll need to collect and remit sales tax across different jurisdictions. Many developers will find it easier to use a Merchant of Record service like Paddle or work with payment processors that offer tax compliance services like Stripe Tax.

Will conversion rates be lower with external payments?

Most likely yes. Apple’s in-app purchase flow is extremely streamlined, while external payments add friction that will inevitably reduce conversion rates. The key question is whether the increased margin offsets the lower conversion.

Can I offer different pricing for external purchases?

Yes! External payment flows give you complete pricing flexibility. You can offer promotional pricing, different tiers, discounts, or bundles that weren’t possible under Apple’s system. Many developers will likely offer lower prices for external purchases to incentivize their use.

What happens to my existing subscribers?

Existing subscribers will continue with their current payment method. If you want to migrate them to external payments, you’ll need to encourage them to cancel their App Store subscription and resubscribe through your external system. This should be done carefully to minimize churn.

What about Android users? Does this affect Google Play?

This ruling specifically applies to Apple’s App Store. However, Epic Games also sued Google over similar practices and won a separate case in December 2023, which found that Google had “unlawfully maintained its monopoly on the Android environment.” Changes to Google’s policies are still developing.