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The pros, cons, and “gotchas” of the new US ruling on external iOS payments

Blog post from RevenueCat

Post Details
Company
Date Published
Author
Nathan Hudson
Word Count
2,047
Language
English
Hacker News Points
-
Summary

A recent U.S. ruling mandates that Apple must allow iOS apps in the U.S. to link to external payment methods without charging commission fees, potentially reducing developer costs by up to 27%. While this change seems beneficial, it introduces new responsibilities for developers, such as managing payments and handling sales tax, which could offset expected savings. Additionally, concerns about user experience and conversion rates arise due to the requirement for users to exit the app for payments. Despite these challenges, the ruling offers opportunities like faster cash flow, improved trial conversion rates, and stronger revenue retention, especially for developers who can effectively manage app-to-web payment strategies. This shift could lead to a more competitive market, enabling developers to pass on savings to users through discounts, thereby fostering a new growth strategy for many mobile app companies.