Understanding the digital marketplace frontier

Mobile game and app developers face a changing landscape. These changes could influence how developers approach and structure in-app payments.

By Mathilde Sarfas, strategy manager, and Eliano Rexho, senior strategy manager

App stores have become mostly centralised ecosystems, with companies like Apple and Google retaining a significant share of app-related revenue, particularly from in-app purchases. Until recently, developers had few choices, but with the introduction of the EU’s Digital Markets Act and a series of U.S. legal rulings, they now have additional options.

The app economy

App stores like Apple’s App Store and Google Play offer access to vast user bases, technical infrastructure and integrated services – including distribution, payments and compliance support. Worldwide, in-app purchase revenue reached $150 billion in 2024, with games contributing approximately 50% on iOS and 60% on Google Play.

Companies like Apple and Google add value through the infrastructure and services they provide. While these arrangements helped streamline app monetisation, they also introduced limitations. Developers were typically required to use the platform’s integrated payment system and follow policies that restricted “steering” – references to external purchasing methods. Distribution was primarily through Apple or Google’s storefronts, which came with commission fees of between 15% and 30%.

Recent regulatory initiatives may reshape the landscape.

EU regulatory developments

The EU’s DMA came into full effect in 2024. It introduced new requirements for companies designated as “gatekeepers,” including large digital platforms like Apple and Google, that aimed to promote competition in core platform services. Under the DMA, gatekeepers are required to allow developers to steer users to make purchases outside their platforms. Additionally, the regulation deters app store owners from preventing rival app marketplaces.

Apple introduced iOS changes to address both requirements. These included support for third-party app marketplaces, the ability to use alternative in-app payment providers and the allowance to steer consumers outside the app for purchases.

The fee structure was also updated: Instead of a standard 30% flat rate for all services, Apple proposed a 17% commission, plus a 3% payment fee for using its in-app payment system and an additional core technology fee for apps with more than 1 million installations, the “free” threshold.

Additional European Commission rulings have indicated that further fee adjustments may be required.

U.S. regulatory developments

Court rulings have shaped how developers may guide users toward external payment options. In 2021, a California court ruled that Apple must allow developers to direct users to alternative purchasing mechanisms. In May 2025, the U.S. Ninth Circuit Court of Appeal clarified the ruling, instructing Apple to enable more flexibility in how developers handle payments. Key points include:

• Apple should not charge developers for purchases made outside the app.
• Developers may use any formatting, style or placement for external links.
• Functional buttons and calls to action should be permitted to communicate with users about alternative pricing or payment options.
• Any platform messaging to users should remain neutral and not dissuade them from considering external options.

Options developers can explore

Because of these changes, developers now have three new choices for distributing and processing.

• In the U.S.: Developers may include links, buttons or other calls to action steering users to external payment platforms. No commission is paid to Apple.
• In the EU: In addition to the U.S. option above, developers may use an alternative payment processor for in-app payments through the App Store. Developers do not pay Apple’s 3% fee to process payments. Apple in most cases still takes a 17% commission and core technology fee.

Further changes to Apple’s iOS make it possible to distribute apps via a third-party app store.

Balancing trade-offs

Three factors stand out across all models: financial implications, user experience and regulatory responsibilities.

Financial implications

Working with a third-party provider may help developers retain a greater share of revenue and save on typically higher fees charged by platform operators. To realise these savings, developers can take on additional responsibilities like processing payments, fraud prevention, customer service and infrastructure management. Long-term gains will depend on how efficiently these services are delivered and integrated into the developer’s broader strategy.

User experience

Simpler checkout flows, intuitive design and support for preferred payment methods increase the likelihood of a successful transaction. Eighty percent of U.S. users prefer using digital wallets for in-app purchases, and 90% use them for online purchases generally. In Europe, 74% of users cite speed and ease as primary reasons for choosing this method.

Developers might consider how to replicate or improve the experience of Apple’s and Google’s unified platforms. Whether using a third-party payment provider, linking to an external checkout page or launching a proprietary store, developers need to maintain the user journey. Considerations include:

• Customisation vs. familiarity: Balance control over branding and interface with consistency and ease of use.
• Friction points: Unfamiliar flows may increase abandonment, particularly in mobile gaming, where immersion is key. Partners like Worldpay can offer payment page flexibility including Hosted Payment Page options to help keep app flow more seamless.
• Payment method support: Default app stores typically support local payment methods and popular digital wallets. Replicating this may require additional work and vendor partnerships. Worldpay offers multiple payment options, including digital wallets, account-to-account payments and buy now, pay later.
• End-to-end integration: Consider account sync, receipts, refunds and customer service experiences – all previously managed by Apple or Google. Worldpay’s Account Updater automatically updates expired cards to avoid payment failures.

Compliance and governance

Apple and Google platforms support secure transactions, manage user data in line with regulations and handle fraud protection. Switching to third-party providers or linking to external payment flows requires compliance with region-specific regulations, such as PCI-DSS, GDPR and PSD2, as well as localised consumer protection and refund policies. Working with a trusted payment partner can provide enterprise grade compliance support without much of the operational and legal burden.

Without an app store infrastructure, developers need to establish secure authentication, fraud mitigation and chargeback management protocols. Experienced payment providers can offer critical support. For example, Worldpay’s fraud prevention solutions combine machine learning with real-time analytics to help identify and stop fraudulent transactions.

More opportunity

The digital distribution landscape is shifting toward greater flexibility and competition. As these changes unfold, staying agile and well-informed will help developers balance user experience, regulatory compliance and business growth.

If you’re thinking about some of the topics we’ve outlined, we would love to discuss how Worldpay can be part of your strategy. We can help you accept payments securely with competitive authorisation rates and to audiences all over the world – however they like to pay. Learn about our payments optimisation tools or contact us.