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External Billing on the App Store: A Game-Changer for App Monetization

In a landmark decision on April 30, 2025, a U.S. District Judge ruled that Apple must allow external payment options in App Store apps for U.S. users. This ruling effectively removes Apple's 15–30% commission on transactions processed outside its platform, granting app developers newfound control over their payment systems. For developers operating subscription-based models, this shift presents an opportunity to enhance profitability and customer retention.

Implications for App Developers

The introduction of external billing empowers developers with greater flexibility in pricing, customer data management, and payment experience customization. Notably, companies like Spotify and Patreon have already integrated external payment options, setting a precedent for others in the industry. This move allows developers to experiment with different monetization strategies and tailor their checkout processes to better suit their user base.

Challenges to Consider

However, with increased control comes increased responsibility. Developers must now manage several aspects previously handled by Apple, including:

Fraud Prevention and Chargebacks: Developers are responsible for detecting and mitigating fraudulent activities, as well as handling chargebacks and refund requests.

Sales Tax Compliance: In the U.S., each state has its own sales tax regulations. Developers must ensure they collect and remit the appropriate taxes to avoid legal complications.

Operational Overhead: Managing transactions, disputes, and maintaining payment infrastructure requires significant resources and expertise.

Conversion Rates: Redirecting users to external payment pages may lead to slight decreases in conversion rates, although proper orchestration can mitigate this effect.

Solidgate's Role in Facilitating the Transition

Solidgate offers a comprehensive solution for developers transitioning to external billing. Their services include:

Billing Orchestration: Solidgate optimizes transaction routing to the most effective acquiring banks, enhancing approval rates and reducing processing costs.

Tax Handling: Through the Solidgate Tax Service, developers can manage U.S. sales tax compliance, or Solidgate can assume the role of the legal seller, handling all tax obligations.

Chargeback and Fraud Management: Solidgate provides tools for chargeback prevention, automated representment, and advanced fraud detection to minimize financial losses.

Subscription and Acquirer Management: Developers can leverage Solidgate's tools for subscription management, smart payment retries, flexible billing logic, and access to top-tier acquiring banks in the U.S. and EU.

Strategic Considerations for Developers

Adopting external billing is not merely a cost-cutting measure but a strategic investment in long-term growth. Success hinges on selecting the right infrastructure and partners. Developers should assess their business models, test various monetization strategies, and ensure they have the necessary resources to manage the complexities of external billing.

Conclusion

The ability to implement external billing on the App Store marks a significant shift in app monetization. While it presents opportunities for increased revenue and control, it also introduces new challenges that developers must navigate. Partnering with experienced providers like Solidgate can streamline this transition, allowing developers to focus on innovation and growth while managing the intricacies of payment processing.

Read more about External Billing.

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Payment Orchestration: Key to Leadership

​The Solidgate blog article titled "Payment Orchestration: Key to Leadership" provides an in-depth exploration of payment orchestration and its significance for modern businesses. Payment orchestration refers to the centralized management of payment transactions through a platform that connects merchants to multiple payment service providers (PSPs). This approach allows businesses to streamline payment processing, integrate diverse payment methods, and optimize payment routing across various channels.​

The article outlines several key benefits of utilizing a payment orchestration platform:​

Access to Multiple Payment Connectors and Flexibility: Merchants can offer a wide range of payment options to cater to a global customer base.​

Reduced Integration Costs: By consolidating payment integrations, businesses can lower development and maintenance expenses.​

Smart Routing: Intelligent transaction routing enhances authorization rates and reduces declines.​

Optimized Payment Flows: Streamlined processes improve operational efficiency and customer experience.​

Economy of Scale: Consolidated payment operations can lead to cost savings and better pricing structures.​

Improved Payment Analytics: Advanced analytics provide insights into payment performance and customer behavior.​

Increased Payment Security: Enhanced security measures help protect against fraud and data breaches.​

The article also discusses the mechanisms of payment orchestration, highlighting how platforms employ automated transaction routing to identify optimal payment service providers, thereby reducing errors and increasing authorized transactions.​