Feels like most apps just default to IAP now because of App Store requirements.
Apple Pay seemed promising for direct payments but the rules keep getting stricter. Anyone still bothering with the comparison or is IAP basically the only real option left?
Stopped comparing them years ago. IAP just works better.
IAP is the only option for digital content in apps now. Apple Pay is limited to physical goods or services outside the app. The rules have tightened, making IAP mandatory. Some apps try to get around this, but Apple acts quickly to shut them down. If your app focuses on digital products, IAP is the only way to go.
Apple makes the choice for you anyway. IAP for digital stuff, Apple Pay for everything else.
Ran campaigns for three different app types over the past few years. The choice got simpler but not for the reasons you’d think.
IAP conversion rates consistently beat Apple Pay by 15-20% in my tests. Users just tap and authenticate - no forms, no card details. The friction difference is huge.
Yes, the 30% hurts. But when I factored in the conversion lift plus reduced payment processing headaches, the math usually worked out. Apple Pay still makes sense for physical products or if you’re selling subscriptions that extend beyond the app.
Tested both on a meditation app last year. IAP pulled 3.2% conversion, Apple Pay got 2.6%. The fee difference didn’t make up for those lost conversions.
IAP is the norm now unless you have a good reason to use Apple Pay.
Both options have been tested, and Apple Pay works well for physical goods or services outside the app. But for digital content within the app, you have to use IAP.
The 30% fee is tough, but users find the payment process easier and more trustworthy.