In response to recent government action, Apple has updated their fees and policies for the U.S. app storefront. Find out what has changed and how the new pricing structure could impact your business.
The introduction of external payment links
For decades, apps listed in the Apple app store were required to use Apple’s payment system and pay hefty fees. Many app developers were frustrated by the expensive restrictions, but it wasn’t until 2020 that an app decided to do something about it.
Epic, a U.S. video and software development company, circumvented Apple’s payment policy by installing a link in a popular video game that routed users to their website for payment instead of using Apple’s payment system.
The bold action ignited a legal battle that eventually led to a groundbreaking ruling: Apple had to allow external payments.
Click here to read more about the history of Apple app payments and how Epic’s actions shaped the future of payments.
Today, apps in the U.S. storefront have options: implement the app store’s built-in payment technology or build external payment links. An external payment link sends users to a developer’s website for payments instead of using Apple’s payment system. Once on the developer’s website, a user can make a purchase that is routed through a merchant account with an acquiring bank — just like any other online business.
NOTE
Currently, only the U.S. and European app storefronts are allowed to use external payments. All other regions are still required to use Apple’s payment system.
FEE COMPARISONG
Apple payment system vs. external payment links
Using Apple’s payment system comes with a hefty fee: 30% of annual revenue. Apple says the fee covers features such as, “technology, tools, software for app development and testing, marketing efforts, platinum-level customer service, and distribution of developers’ apps and digital content.”
When the courts forced Apple to allow alternative payment methods, Apple complied — but maintained an expensive 27% fee.
Epic took Apple back to court and said the fee was excessive — and the judge agreed. As of April 2025, Apple has explicitly been banned from collecting commissions for external payments. However, Apple has appealed the court’s decision, and a verdict has yet to be reached.
As of August 2025, the following fees apply to payments processed with and without Apple’s payment system.
30%
Apple’s commission on internal payments
0%
Apple’s commission on external payments
30%
Apple’s commission on internal payments
0%
Apple’s commission on external payments
Note: These fees apply to the U.S. storefront only. E.U. apps have a very different fee structure. Apps in all other regions — outside the US and EU — also pay the 30% commission fee, but they don’t have the option to use external payment links.
Choosing the best payment strategy
Are you wondering if external payments would be a good fit for your app?
Looking at pricing alone, it seems like a no brainer. If you switch to external payments, you will probably save $25+ for every $100 in revenue (depending on your chosen bank’s processing fees).
But when you dig a little deeper, there are even more benefits of switching.
- Increased conversions
- Increased earning potential
- More data
- Quicker payouts
- Fewer chargebacks
There is one thing to note before you switch.
Apple’s payment system is an all-in-one solution. The technology allows you to process payments, obviously, but it also detects fraud and manages chargebacks.
When you choose an external payment provider, make sure you find another all-in-one solution — like AltoPay. You want to replace — perhaps even improve — the solutions you already had in place with Apple.
Want to know more? Check our detailed guide.
Should an App Use Apple Payment Platform or External Payment Links?
Ready to try external payment links?
Are you ready to switch from Apple’s expensive payment system to a cost-effective, ROI-optimized alternative?
AltoPay can help. Reach out today to find out how to get started.
AUTHOR
Jessica Velasco
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
