Navigating the new App2Web environment with Nathan Hudson and Stoikk

Core principles of alternative payment implementation

Understanding the regulatory framework

First, let’s clarify what this legislation actually means.

The recent ruling establishes several key principles that app developers should understand:

Universal application: The ruling applies to all apps, not just "reader apps".

Any app selling anything with a payment can implement alternative methods, including both subscription and consumable purchase apps.

Legal protection: The court explicitly prohibits Apple from retaliating against developers who implement alternative payment methods, providing a safeguard for businesses exploring these options.

User communication freedom: The ruling prevents Apple from using scare tactics to discourage users from choosing alternative payment options, allowing developers to communicate openly with their customers.

Technical implementation options

So what does this all mean in practice, two weeks on?

How can apps actually carry out the technical implementation today? 

At its foundation, implementing alternative payments involves three fundamental steps:

1. Adding a button to your paywall directing users to external payment
2. Creating a web checkout experience
3. Redirecting users back to the app after purchase completion

However, two distinct technical approaches have emerged. 

External link approach

This method directs users out of the app to a web browser for payment management, and some apps like Superwall and RevenueCat’s Dipsea have reported a decrease in conversion rates using this approach. 

WebView implementation

The WebView approach embeds the web checkout experience within the app itself, creating a more seamless user experience. 

By layering the checkout on top of the app rather than taking users out of it entirely, developers can maintain continuity in the user journey. 

The more complex technically, intermittent fasting app Kompanion has found early success here. 

Let’s break down their approach: 

Real world implementation: Stoikk

Stoikk embedded Paddle's checkout method directly in their app using Web-View. 

Apple pay focus 

Their checkout design prioritized Apple Pay to maintain the familiarity and trust of the native payment experience.

Dual options: 

Their paywall features two call-to-action buttons: "Use Apple Pay and get a 25% extra discount" and "Continue in app."

Simplified experience: 

They disabled credit card payments to ensure Apple Pay would be displayed prominently in the checkout.

Trust signaling:

They implemented a loading screen with their app logo before the checkout page to reinforce user trust and brand recognition.

The Kompanion team moved quickly to be early adopters in implementing alternative payments. 

Their experience with web funnels over the previous three years provided them with valuable data on how web lifetime values (LTVs) perform, allowing them to make informed decisions about their implementation strategy.

Results

The early results have been promising for Kompanion. 

Unlike Superwalls 11.9% drop in initial conversions, Kompanion actually saw a slight increase in conversions.

The company anticipates significant increases in customer lifetime value through improved retention tactics available with web payments, and by moving quickly, they've gained valuable insights before the market becomes saturated and CPMs (Cost Per Mile) potentially increase.

Key success factors and optimization strategies

A/B testing framework

Superwalls dip in conversion and Kompanion's success are relative to their product and audience.

We know from our own tests that one-page checkout can dramatically increase conversions for inexpensive digital products, whilst decreasing the conversion rate on pricier B2B SaaS checkout pages. 

Your customer base will have vastly different pay preferences, even to your competitors… assume nothing and experiment everything. 

Developers can run A/B tests and segment portions of their audience, even down to specific demographics within the US, without needing to test in every state.

Specific test variables to consider include:

• Price points and discount strategies
• Placement of the external payment option (paywall vs. earlier in the user journey)
• Different UX patterns and visuals
• Various cohorts based on user demographics or behaviors

<VIDEO> https://drive.google.com/drive/folders/1YJj2DNAt_zYIks4_xGObicZM0AQxh3Iw

Strategic placement beyond paywalls

While most implementations focus on paywall integration, a more innovative approach involves finding the optimal point in an onboarding journey to link users to web-based payments. 

By strategically timing when users are directed to web payments, developers may significantly reduce conversion friction.

This could involve initiating onboarding in the app, then transitioning to web during a loading screen or interstitial moment when customizing plans, creating a more natural flow in the user journey.

Building user trust

The payment experience serves as a reflection of the trust users have in your service. Effective design isn't just about aesthetics—it's about fostering and maintaining user confidence throughout the payment process.

Practical trust-building elements include:

• Brand-consistent loading screens
• Simplified payment options (preferably Apple Pay)
• Clear communication about the payment process
• Visual consistency between app and web experiences

Retention optimization

Beyond initial conversion, the ruling unlocks significant advantages for customer retention:

• Advanced cancellation flows: Unlike Apple's streamlined cancellation process, web payments allow for implementing sophisticated cancellation flows with options like:
• Direct customer communication: Web payments enable more direct communication with customers about their subscriptions and payments.
• Higher web LTVs: Data suggests that retention rates are generally higher with web-based payment systems, contributing to increased customer lifetime value.

Implementation strategy and rollout plan

Here's a recommended approach for implementing alternative payment methods:

Phase 1: Evaluation and Planning (1-2 Weeks)

1. Assess your app's current conversion metrics to establish a baseline
2. Identify key metrics that could be improved through alternative payments
3. Conduct a team brainstorming session to explore implementation options
4. Select the technical approach (WebView vs. external link)
5. Develop a testing strategy and identify user segments for experimentation

Phase 2: Initial Implementation (2-4 Weeks)

1. Build a simple initial implementation (button on paywall linking to web checkout)
2. Create a WebView implementation if resources allow
3. Set up proper attribution tracking
4. Implement trust-building elements in the checkout experience
5. Launch A/B tests with a portion of your user base

Phase 3: Optimization (Ongoing)

1. Analyze conversion data from initial tests
2. Experiment with different payment flows, discount strategies, and UX patterns
3. Expand successful approaches to larger user segments
4. Implement advanced cancellation flows and retention strategies
5. Continuously monitor attribution data and refine marketing strategies

Challenges and mitigation strategies

Infrastructure and operational considerations

While the opportunity to implement alternative payment methods is compelling, developers should approach this transition with strategic caution. The App Store handles several critical functions that many in the app space take for granted, and adequate replacements must be established:

Global payments management: Supporting different payment methods across various international markets requires significant infrastructure.

Fraud prevention: Protection against chargebacks and payment fraud becomes the developer's responsibility.

Subscription management: Handling trial periods, renewals, and cancellations demands robust systems. 

Global tax compliance: Managing international tax obligations introduces substantial complexity.

Stoikks Erkman knows first hand the consequences of not sorting backend complexity out when it comes to web payments, as he reveals below. 

<VIDEO> https://drive.google.com/file/d/18Vl-OrtPrU0nJCQREeSL9V5xE3dDQB0A/view?usp=sharing

Moving to web payments without addressing these backend operational requirements could create serious legal and business issues. 

The increased revenue and freedom come with additional responsibilities that must be carefully managed to avoid disruptions to your business.

Learn how Paddle can help 

Attribution complexity

The introduction of App2Web funnels introduces new complexity to attribution models. 

Suddenly, you may have campaigns where users stay within the app, transition from app to web, or move from web to app, creating multiple attribution paths to track.

Mitigation strategies include:

• Utilizing server-to-server events and APIs from attribution platforms
• Running fewer channels initially to simplify attribution
• Implementing custom attribution models
• Conducting incremental testing to validate attribution approaches

User experience (UX) friction

The potential for increased user friction when transitioning between app and web environments remains a significant concern. 

Developers who wait for others to implement first may benefit from reduced friction as users become familiar with these new payment patterns, but they also risk missing the early-mover advantage.

All roads lead back to experimentation. Test and test again to find out what is right for your app and your ICP. 

Ready to rise to the opportunity? 

The opportunity to implement alternative payment methods represents one of the most significant shifts in the mobile app ecosystem in recent years. 

While challenges exist, early data from companies like kompanion suggest  that well-executed implementations can maintain or even improve conversion rates while reaping the rewards leaving Apple’s wall garden present.

The key to success lies in rapid experimentation, careful attention to user experience, and a focus on building trust throughout the payment process. 

App developers who move quickly and thoughtfully stand to gain a significant competitive advantage in the evolving landscape of mobile app monetization.