The Green Sheet Online Edition
September 22, 2025 • 25:09:02
Regulations empower developers in app economy power shift
For many years, the digital app economy has been shaped and controlled by the two dominant app stores, iOS and Android. These platforms dictated the rules governing how developers and app store owners could monetize their applications, including rigid policies on in-app purchases, payment methods and subscription models.
Consumers, too, were largely restricted, forced to rely on the limited payment systems approved by app store owners.
Today, this long-standing status quo is undergoing a dramatic shift. A wave of regulatory reforms across global markets is redistributing control, placing significantly more power into the hands of application developers. This transformation is not merely about compliance; it represents a fundamental restructuring of the app store economy.
Developers are gaining the ability to select and integrate third-party payment providers, thereby offering consumers greater freedom, choice and transparency in how they transact online.
For businesses operating in the app economy, these changes carry far-reaching implications. They unlock opportunities for improved profitability, enhanced customer engagement and innovative service design. At the same time, they introduce new operational considerations for developers, particularly in areas of compliance, user experience and technology integration.
From app store control to developer autonomy
The push for greater flexibility in digital transactions has been gaining momentum worldwide. In the United States, Epic Games won two lawsuits against Apple and Google over their in-app payment restrictions, allowing merchants to integrate other payment providers and preventing Apple and Google from charging their 30 percent commission for transactions made outside their billing platforms.
Merchants like Spotify, Amazon (Kindle) and Epic have quickly acted and changed their apps to provide new payment experiences to their consumers.
In parallel, Europe’s Digital Markets Act, which came into force in 2024, has set a clear precedent by requiring large tech gatekeepers to allow alternative billing methods, with penalties of up to 10 percent of global annual turnover for non-compliance. Apple and Google have implemented alternative terms for app developers in this market, lowering fees and other restrictions.
Overall, this evolution is a shift toward a more open, multi-provider digital payments landscape rather than a simple price drop across the board.
Strategic benefits of third-party billing
While the transition introduces uncertainty, the benefits of third-party billing for developers are extensive and compelling. Five advantages stand out and underscore why third-party billing is not just a regulatory compliance measure but also a strategic lever for competitive advantage.
- Higher profit margins: By bypassing the steep fees historically charged by app stores, often between 15 and 30 percent, developers retain a larger share of revenue. This margin expansion not only enhances profitability but also provides businesses with the flexibility to reinvest in growth, product innovation or user acquisition.
- Tailored checkout experiences: Developers can now design payment processes that align seamlessly with their brand identity. From interface design to upselling opportunities, the checkout journey can be fully optimized to drive conversions and reinforce customer trust.
- Greater payment options for consumers: Payment preferences vary widely across regions. While credit cards may dominate in North America, digital wallets and local payment platforms are increasingly prevalent in Europe, Asia, Africa and Latin America. Supporting a broad spectrum of payment options directly improves conversion rates, reduces cart abandonment and increases customer satisfaction.
- Improved subscription management: Subscriptions are a cornerstone of the app economy. By managing billing directly, developers gain deeper visibility into customer behavior and can provide flexible options such as seamless upgrades, downgrades or pause features. This level of control supports stronger retention and creates timely opportunities for upselling.
- Enhanced customer relationships: Direct involvement in payment systems enables developers to handle customer service requests more efficiently. Refunds, billing inquiries and transaction disputes can be addressed promptly, improving user satisfaction and fostering long-term loyalty.
Challenges and considerations for developers
Despite the clear upside, the transition to third-party billing is not without its challenges. Developers must carefully consider the following factors:
- Regulatory fragmentation: Requirements vary significantly by market; what is permissible in the EU will differ from the United States and South Korea. Developers must design payment experiences per market.
- User trust and security: Payment processing is a highly sensitive aspect of the user journey. Developers must ensure third-party providers meet the highest standards of encryption, fraud detection and data privacy to maintain user trust.
- Technical integration: Introducing third-party systems requires investment in technical infrastructure. This includes APIs, user authentication and seamless interoperability with app store policies where dual systems coexist.
- Operational complexity: With direct control comes added responsibility. Developers must manage tax compliance, refunds, chargebacks and regulatory reporting, functions previously absorbed by app store operators.
While these hurdles are significant, they are not insurmountable. By aligning with experienced payment partners, developers can mitigate risks while unlocking the potential of greater control.
Practical steps for developers
For many developers, particularly smaller studios or independent publishers, a phased approach to third-party billing is prudent. Several strategies can help minimize risk while maximizing learning:
- Start with pilot markets: The EU, US and are currently leading in regulatory reforms. Developers can experiment with alternative payment systems in these regions, gather user feedback, and refine strategies before a broader rollout.
- Leverage payment service providers (PSPs): Collaborating with established PSPs provides immediate expertise in compliance, fraud prevention and regional payment preferences. These partnerships reduce the technical and regulatory burden while accelerating time-to-market.
- Prioritize customer communication: Transparency is critical. Developers should clearly explain the benefits of alternative payment options to users, emphasizing security, convenience and potential cost savings. Well-informed customers are more likely to adopt new systems.
- Optimize for conversion: Early pilots should include A/B testing of different checkout designs and payment methods to determine which configurations yield the highest conversion rates. Insights from these experiments will inform broader scaling strategies.
A new era for app store economy
The shift in regulatory dynamics marks the beginning of a more equitable app store economy. Power is moving away from centralized app store operators and toward developers and consumers, creating a more competitive, innovative and customer-centric marketplace. Besides the EU, the United States and South Korea; Japan, the UK and Australia will implement similar new laws in 2025, with other markets to follow in 2026.
For developers and app owners, this is both a challenge and an opportunity. Those who act decisively, experimenting with third-party billing, refining customer experiences and forging strategic payment partnerships, will be best positioned to thrive.
The broader implications for the digital economy are equally profound. Consumers gain greater choice and control, while developers are incentivized to innovate beyond the constraints of legacy systems. Over time, these dynamics will likely fuel a virtuous cycle of competition, efficiency and value creation.
The future of app monetization will not be dictated by a single payment channel or controlled by a handful of platforms. It will be defined by flexibility, user empowerment and strategic innovation. The question is not whether to act, but how quickly to seize the opportunity. 
Menno Hoekstra, director of product at Worldline is a passionate product manager with 15+ years of experience in fintech and SaaS, driving innovation and user-centric solutions. His blend of technical curiosity, marketing background and strong communication skills allows him to bridge the gap between customers, sales and IT. He excels at translating problems into successful products, owning their lifecycle from concept to launch and beyond. Contact him via LinkedIn at https://linkedin.com/in/mennohoekstra.
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