Navigating the New App Store Policies
May 07, 2025
6 min read
Note: This guide is intended for mobile apps selling digital products and services. If your app sells physical goods and/or services performed outside your app (ex: ride sharing, food delivery, person-to-person tutoring, etc.), then please use the PayPal Mobile SDK.
Navigating the New App Store Policies: How to Reduce Transaction Fees with PayPal
The landscape of mobile app payments has shifted significantly following the the Ninth Circuit Court of Appeals decision in Epic vs. Apple. Now, developers and app owners can direct U.S. users to external payment methods for digital goods and recurring subscriptions, bypassing Apple’s in-app purchase system. This change can help you reduce transaction fees and lower your overall costs. Here’s how you can get started with PayPal to streamline your payment process and save money.
Who This Affects
If you are a developer or app owner with an iOS or Android app that allows for in-app purchases, this change is relevant to you. Here are some specific use cases where this can make a significant difference:
- In-Game Currency: Apps that offer virtual coins, gems, or other in-game currency.
- Freemium Plans: Apps that offer a free version with the option to upgrade to a premium plan.
- Creative Goods: Apps that sell digital art, music, or other creative content.
- Plan Upgrades: Apps that offer different tiers of service, such as enhanced features or ad-free experiences.
- Learning Tools: Educational apps that provide access to courses, tutorials, or premium content.
- Membership Services: Apps that offer membership or subscription-based access to exclusive content or services.
- Software Licenses: Apps that sell licenses for software or tools.
- Virtual Events: Apps that host virtual events, webinars, or conferences and charge for entry.
- Digital Magazines and Newspapers: Apps that offer subscriptions to digital publications.
- Online Courses and Tutorials: Apps that provide educational content through subscriptions or one-time purchases.
- Streaming Services: Apps that offer streaming of music, videos, or other media with subscription models.
- Gaming Services: Apps that offer subscription-based gaming services or one-time purchases for game expansions or DLC.
The Simple Solution: Payment Links
The easiest way to facilitate payments is by creating a payment link for both subscription and one-time payment scenarios. Here’s a step-by-step guide to set it up:
Step 1: Ensure You Have a PayPal Business Account
Before you begin, make sure you have a PayPal Business account. This will allow you to create and manage payment links and buttons. If you want to try the experience, you can also login to your PayPal sandbox account and follow the steps below.
Step 2: Choose 2a for recurring and 2b for non-recurring in-app purchase setup
Step 2a: If you need recurring in-app purchase, set up Subscription Payments
Navigate to Sales > Subscription:
Login to your PayPal business account or sandbox account.
Click on "Sales" and then select "Subscription."
Create a payment link for your subscription plan.
Add this link to your in-app purchase button.
Step 2b: If you need non-recurring in-app purchase, set up One-Time Payments
Navigate to Pay and Get Paid > Create Payment Links and Buttons:
Login to your PayPal business account or sandbox account.
Click on "Pay and Get Paid" and then select "Create Payment Links and Buttons."
Set up your item and generate a payment link.
Add this payment link to any in-app purchase button.
Note that the payment link does not expire and can be used multiple times.
When creating the payment link configuration, set up an "Auto Return URL" to bring the user back to your app after a successful payment.
Explore Other integration methods:
In addition to payment links, PayPal offers various Checkout APIs and Native Mobile SDK that can be integrated into your app for more advanced payment processing. These APIs provide a seamless user experience and can be customized to fit your specific needs.
Why Make the Switch?
By redirecting your iOS app purchases to the browser, you can significantly reduce your transaction costs. This is particularly beneficial for recurring subscriptions and one-click payments, where the savings can add up over time. Here are a few more reasons to consider this change:
Lower Fees: Bypassing Apple’s in-app purchase system can save you up to 30% in transaction fees.
Higher Sales: Help drive conversion by offering a trusted, seamless payment experience.
More options: You have more control over the payment process with support for PayPal, Venmo, Apple Pay and Cards and can customize it to better fit your app’s needs.
Smart security: Get peace of mind with encryption, fraud prevention, and Seller Protection.
Get Started Today
The new App Store policies present a valuable opportunity for developers and app owners to optimize their revenue streams. By leveraging external payment methods like PayPal, you can enhance user experience while reducing costs.
Don’t miss out on this chance to improve your app’s financial performance. Start setting up your payment links today within seconds! Feel free to contact us if you have any questions.
Resources
Follow the iOS demo app on steps to setup payment links in your app in our Github repository.
Videos:
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