Your app can be doing great revenue-wise and still lose margin unnecessarily. Especially if you keep automatically relying on in-app purchases for digital purchases, app store fees quickly add up. By choosing more smartly between a payment provider, a payment gateway, and direct payment, you keep more without blindly putting your conversion at risk.
Choosing a payment provider for your app: how to protect your margin against app store commissions
In this blog, you'll learn where Apple and Google make their money, when an external payment route becomes worthwhile, and how to choose a payment provider that fits your app, revenue stage, and market. This way, you're not making an isolated technical choice, but a decision that truly protects your margin.
1. What do Apple and Google really cost you per purchase?
Apple takes a standard 30% of every in-app purchase or subscription for digital goods. If you're in Apple's Small Business Program, that drops to 15%. TechCrunch compares that to an external payment provider like Stripe, which comes with much lower transaction fees. That difference shows up directly in your margin. Google Play works roughly the same way. So check today whether your app qualifies for the lower rate, and immediately compare your app store fees against a direct payment option.
Does 15% still sound acceptable? You might be missing the real math. Once you factor in acquisition costs, hosting, and support, that margin often ends up surprisingly thin.
Make it concrete for yourself. Put your monthly app revenue, current store rate, and net revenue after costs into a simple sheet. That quickly shows you whether your margin is mainly leaking on subscriptions or one-off purchases. If you sell physical services or products, check right away whether you're unnecessarily charging those through in-app purchase.
Sources: Coffee Digital, TechCrunch
2. When does an external payment gateway become worthwhile?
Since the Epic v. Apple ruling in April 2025, your payment gateway strategy suddenly looks very different. According to Phiture, Apple is no longer allowed to charge commission on external payments or show "scare screens" that drive users away. That step can lower your commission costs by up to 90%, according to the same source. TechCrunch reports that Stripe is already actively helping iOS teams with this. Apple did appeal the ruling, though. That's exactly why now is the moment to line up your payment provider, technology, and compliance side by side.
That 90% saving sounds spectacular, but this is exactly where many teams cut corners. The real gain isn't just in lower fees, but in timing, legal room, and technical feasibility. So the question isn't whether you can switch, but whether you're ready to.
Start small. First send a limited portion of your iOS users to an external payment flow and measure what happens with completion rates, support questions, and refunds. If you're already bringing in more than €10,000 a month through Apple, switching is often worth it. Just make sure your legal check and technical planning are wrapped up before going live.
Sources: Coffee Digital, Phiture, TechCrunch
3. How do you choose a payment provider without losing conversion?
Choosing the cheapest payment provider for your app sounds smart, but conversion always wins. Phiture warns that mandatory warning screens in the EU can drag lifetime value down by 10 to 20% on external payments. So test first: does your payment gateway actually perform better than in-app purchase, or does the user drop off? In the Dutch market, there's a real opportunity here. iDEAL converts well, and providers like Mollie and Adyen support it by default. Do you sell physical services or products? Then Apple and Google don't charge commission, and direct payment is often the logical choice.
This is often where things go wrong. A lower fee looks like a no-brainer, until your conversion quietly leaks away in the payment flow. In Europe especially, one extra screen can be enough to make people drop off. Are you sure your payment method is actually cheaper, or does it just look that way on paper?
Start by splitting your transactions into 3 groups: digital purchases, subscriptions, and physical services. That way, you avoid choosing one payment route for completely different situations. Then request quotes from 2 or 3 providers and compare not just the fee, but also iDEAL integration with your app and how quickly their team can help you go live.
Sources: Coffee Digital, Phiture
4. Which payment strategy fits your app and revenue stage?
A payment provider that fits your app depends on your stage. If you're under $1 million in revenue, you often get the 15% rate with Apple and Google, and even 12% on external links via StoreKit. Above that, an external payment gateway quickly becomes more interesting for your margin. Do you have a subscription app? Then the first year is especially crucial, after which commission drops to 15%. So do a simple calculation: current app store fees versus direct payment, and only then choose your route.
The smartest route is rarely the default route. Under $1 million in revenue, 15% or even 12% can make sense, above that the math suddenly looks very different. But at what volume does your business case actually tip, and which payment mix still fits your app at that point?
As mentioned earlier, this starts with calculating instead of assuming. Check your store rate, split your transactions, test external payments small first, and only choose your provider after comparing both cost and ease of use. By combining these steps, you protect your margin without blindly hurting your conversion. That's exactly what makes the difference between an app that generates revenue and an app that actually turns a profit.
Source: Coffee Digital
What we can do for you here
In these kinds of choices, it's not the provider with the lowest fee that wins, but the route that tightly aligns margin, conversion, and technology. That's exactly what we work on at Coffee Digital, with a data-first approach, the GROW Framework, and validation in short sprints. This way, a payment question doesn't become an isolated technical choice, but a growth decision that fits your app and revenue stage. Want to know more? Schedule a call with us!
