Google Play Billing

Developers can use Apple's StoreKit framework to incorporate in-app purchases (IAPs) into their apps on iOS, macOS, watchOS, and tvOS. The framework facilitates secure payment processing on behalf of the app, connecting with the AppStore and requesting user authorization for payments.

A platform fee (commonly called the "Apple tax" or "Google tax") is the commission that app store platforms charge on in-app purchases and subscriptions processed through their billing systems. Apple charges 30% on most transactions through the App Store, reduced to 15% for developers earning less than $1 million annually through the App Store Small Business Program, and 15% on all subscription renewals after the first year. Google Play charges 15% on subscription revenue and 15% on the first $1 million of non-subscription revenue, with 30% above that threshold. These platform fees have a profound impact on the unit economics of subscription apps. On a $9.99/month subscription, Apple's 30% first-year commission means the developer nets only $6.99 — and $8.49 after the rate drops to 15% in year two. This fee structure has driven significant industry interest in alternative billing mechanisms, including web-based checkout flows that process payments outside the app store ecosystem. Regulatory actions worldwide — including the EU Digital Markets Act, Japan's TPSA guidelines, and court rulings in multiple jurisdictions — are gradually expanding developers' ability to offer alternative payment options and communicate pricing outside the app, creating opportunities for meaningful margin improvement.

Alternative payment methods refer to any billing mechanism that allows mobile app users to complete purchases outside of the default App Store or Google Play in-app payment systems. These include web-based checkout pages, direct carrier billing, third-party payment processors like Stripe or Paddle, and regional payment solutions. For subscription apps, alternative payment methods have become increasingly important as regulatory changes — such as the EU Digital Markets Act and rulings in Epic v. Apple — have opened the door for developers to process payments outside the traditional app store ecosystem. By routing users to a web checkout, developers can reduce or entirely avoid the 15–30% platform commission, significantly improving unit economics. However, implementing alternative payment methods requires careful consideration of user experience friction, compliance with evolving app store policies, and the technical infrastructure needed to handle billing, receipts, and entitlements across platforms.

Third-party billing refers to the use of external payment processors — such as Stripe, Paddle, Braintree, or Adyen — to handle subscription and purchase transactions outside of Apple's App Store or Google Play's native billing systems. Third-party billing enables app developers to process payments on their own terms, typically through web-based checkout flows, and often at significantly lower processing fees (2–5% compared to 15–30% platform commissions). This approach has become increasingly viable as regulatory pressure and legal rulings in multiple jurisdictions have forced app store platforms to allow or accommodate alternative payment options. For developers implementing web-to-app subscription models, third-party billing is the technical backbone — it handles payment processing, subscription management, invoicing, tax calculation, PCI compliance, and often provides webhook-based events for real-time subscription status updates. The trade-off is added complexity: developers must build and maintain the web checkout experience, handle subscription lifecycle management outside the native app store frameworks, and ensure a seamless user experience as subscribers transition between the web payment flow and the app itself.

In-app subscriptions are a payment model in which users are charged on a recurring basis in exchange for access to premium content, exclusive features, or services. They are frequently used by developers as a way to monetize their apps by providing users with ad-free experiences or exclusive content.