According to a recent LinkedIn post from Paddle, the company is highlighting performance data from app teams using iOS External Payment flows since April 2025. The post suggests these teams are generally seeing higher revenue margins, greater control over pricing and experimentation, and faster payout cycles when compared with solely using in-app payments.
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The post indicates that conversion outcomes have been mixed, with many apps experiencing a 5–12% decline when moving away from in-app payments, particularly if the handoff from the App Store or the checkout experience is suboptimal. However, the analysis shared suggests that this conversion drag can be offset by higher net revenue and improved lifetime value, with some teams reportedly seeing up to a 17% LTV uplift when combined with effective retention tools.
Paddle’s commentary also emphasizes that core App Store advantages such as distribution, entitlement management, and native in-app experience remain intact, leading many teams to operate in a hybrid model that uses both in-app and external payments in parallel. For investors, this positioning points to a potential expansion opportunity for Paddle in the app monetization stack, as developers seek to optimize margins while maintaining App Store reach.
If sustained, the reported uplift in margins and LTV could reinforce Paddle’s value proposition as a payments and revenue infrastructure provider for software and app companies. This dynamic may support higher customer retention and upsell potential, while rising regulatory pressure on platform fees and payment rules could create additional demand tailwinds for External Payment solutions over the medium term.