External billing is now live on App Store, and it’s a big deal for app monetization

Something major just shifted in the world of mobile apps. On April 30, 2025, a U.S. District Judge ruled in the Epic Games v. Apple case that Apple must allow external payment options in App Store apps for U.S. users. Simply put, Apple can no longer block redirects to third-party checkouts, nor can it charge a commission on those transactions.

This opens the door to a new level of freedom for app developers, especially those running subscription-based models. For the first time, merchants can fully tap into the benefits of billing orchestration on the App Store. 

But like any powerful tool, external payment processing comes with responsibilities. Let’s break down what this change means in practice.

What this means for app developers

External billing gives developers something they’ve long wanted: control. Control over the payment experience, pricing flexibility, customer data, and, most importantly, margins. No more 15–30% Apple tax. No more limitations on how and when you can charge your users.

You can experiment with monetization strategies, tailor the checkout UX, and build your own payment stack. It’s a big win, but it’s not plug-and-play. With great freedom comes real operational complexity.

Another upside: LTV can go up significantly. Why? Canceling a subscription outside of the App Store requires more intent and friction. So your churn drops, and long-term revenue rises.

Big players like Spotify and Patreon wasted no time and have already released updates enabling users to pay outside the App Store. It’s only a matter of time before smaller developers follow suit.

Key considerations before you make the switch

1. Risk management. When payments no longer go through the App Store, you’re fully responsible for handling fraud, chargebacks, and refunds. Apple used to deal with all that behind the scenes. Now, you’ll need robust systems for:

• Detecting and preventing fraud;
• Managing refund requests;
• Responding to disputes efficiently.

2. Sales tax compliance in the US. If you’re accepting payments from US users, you’re legally required to collect and remit sales tax in each state where you have customers. There’s no national VAT – each state (and sometimes even individual counties) has its own rules. Without proper infrastructure, it’s easy to make costly mistakes and get into legal trouble. 

3. Operational overhead. When you take billing in-house, you become your own payment processor. That means:

• Tracking and reconciling transactions;
• Managing disputes and returns;
• Working with acquiring banks and fraud tools;
• Maintaining and optimizing your payment stack regularly.

4. Conversion trade-offs. In theory, payment conversion might take a slight hit since users are redirected out of the app and asked to enter payment details manually. But in practice, the drop is often negligible, especially with the right orchestration in place.

Where Solidgate comes in

At Solidgate, we specialize in complex billing scenarios. We work with global subscription businesses selling across the US, EU, and beyond. We offer more than just payment processing – we provide a complete, optimized infrastructure for external billing.

1. Billing orchestration. We improve approval rates and lower processing costs by routing transactions to the most effective acquiring banks. We tailor the flow to specific markets and reduce false declines, so you capture more revenue with less friction.

2. Tax handling. We help you manage US sales tax smoothly, or handle the entire process for you through our integrated Solidgate Tax Service. That means we become the legal seller of your product and handle all your tax obligations. You focus on growth – we handle compliance.

3. Chargeback and fraud management. Our tools include:

• Chargeback prevention tools for cards and PayPal;
• Automated chargeback representment;
• Advanced antifraud to reduce financial losses.

4. Subscription and acquirer management. We offer built-in tools for subscription management, smart payment retries, flexible billing logic, and access to top-tier acquiring banks in the US and EU.

Moving to external billing on Apple isn’t just about cutting the commission. It’s a strategic investment in flexibility, ownership, and long-term growth. But success depends on having the right infrastructure – and the right partner.

Apple is no longer the gatekeeper to app monetization. You’ve got a new tool in your hands. How you use it will depend on your business model, and that model should be tested, optimized, and supported by a team that knows what it’s doing. 

Thinking about testing external billing in the US? Let’s do it together. If you’re already a Solidgate merchant using Web2App flows, you can now add a link to your existing Solidgate checkout directly from your in-app paywall. Now with Solidgate yet? Just book a call with one of our experts.