Substack Skirts Apple’s 30% Fee.

Substack Enables In App Purchases for All Paid Newsletters on iOS

Substack has rolled out the ability for users to subscribe to any paid publication directly through an in app purchase from its official iOS app. This development follows an extensive testing phase where the feature was made available to 30,000 creators on the platform.

This new payment method significantly streamlines the subscription process. Upgrading to a paid plan is now a matter of a few quick taps on an iPhone screen. Previously, users often could not complete a paid subscription upgrade within the app itself, requiring a more cumbersome external process.

However, this new convenience comes with a notable trade off. To account for the standard 30 percent commission that Apple takes on all in app purchases, subscriptions bought through the iOS app will generally be more expensive. Substack has implemented a system that automatically sets higher prices for iOS subscriptions. The stated goal is to ensure that the creator’s net revenue remains approximately the same as it would be for a subscription processed through Substack’s own website.

Creators retain control over these prices and have the option to manually adjust them lower within their publication’s settings, though doing so would mean accepting a smaller payout from subscriptions that originate on Apple’s platform.

For readers in the United States looking to support their favorite writers without the iOS markup, an alternative exists. Due to a legal ruling stemming from the Epic Games lawsuit against Apple, apps in the US are now permitted to include links to external payment methods. This allows Substack to direct users to its website to complete a subscription purchase at the standard rate. While this method involves a few extra steps compared to a seamless in app purchase, it results in a lower final cost for the subscriber.

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