Been testing both approaches for our subscription flow and the results are mixed.
Web payments give us more control and better margins, but IAP feels smoother for users.
Anyone else dealing with this tradeoff? What did you end up choosing and why?
Depends on your user behavior patterns and what you’re selling.
I ran this exact test on a productivity app - web payments worked better for annual plans because users had time to think about the purchase. But monthly subs converted way better through IAP.
The trick was segmenting by user intent. Power users who hit certain usage thresholds got the web flow with better pricing. Casual users stayed on IAP to reduce drop-off.
Also worth noting - web payments let you run more aggressive retention campaigns since you own the billing relationship. That’s been huge for reducing churn long-term.
Web is better for control but IAP feels right.
Run web payments for higher-value subs and IAP for everything else.
Users paying $20+ monthly don’t mind an extra step if it saves them money. But for $5 subs, friction kills conversions more than the 30% cut hurts your margins.
I’ve seen apps lose 40% of conversions trying to push everyone through web payments. Start with IAP as default, then A/B test web for your premium tiers.
Web payments help when users see the value before committing.
Margins are key if you have lots of users, but many prefer the native flow.
I usually test both but lean towards IAP as the default and use web payments as a backup for those who want it.
We stick with IAP mostly. The margins hurt but users drop off way less.