Spotify’s support for external payments has increased subscriptions

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Spotify's support for external payments has increased subscriptions

Spotify claims that the ability to redirect its users to external payment links in the iOS app has already had a positive impact on sales. In a recent filing in support of Epic Games in a lawsuit with Apple over external payments in the App Store, Spotify claims that its internal data shows that the recent web payment update has led to a “significant increase in the number of iOS users who have upgraded to a Premium subscription.”

Shortly after the U.S. District Court of Northern California ruled in favor of Fortnite developer Epic Games in a third-party payment case, Apple was finally forced to allow U.S. app developers to direct their customers to other payment methods from their iOS apps without having to pay Apple a fee.

Now iOS app developers in the US can tell their customers about online payment options and whether there is a discount for paying directly.

Spotify was one of the first to update its iOS app to take advantage of the new policy. The updated version explains to customers how much a subscription costs, redirects them to a site where audiobooks can be purchased, and allows users to buy audiobooks directly.

The results have been overwhelmingly positive, Spotify said in a new statement.

“Resolution 2025 has created significant benefits for developers and, more importantly, for consumers,” the statement reads. “Spotify’s internal data shows that the iOS app updates have already resulted in a significant increase in the number of iOS users who have upgraded to a premium subscription. Compliance with Apple’s requirements has also enabled new innovative products that would not have been possible without the ban.”

Spotify said the updated “Premium Subscription Destination Page” in its iOS app tells free users how to upgrade to a paid subscription, offering pricing information and a link to the checkout page. After adding the link and pricing information, Spotify claims to have seen an immediate impact of the change.

In the two weeks since the new page went live, the conversion rate from free to premium has remained “relatively unchanged” on Android, where Spotify was already able to offer basic pricing information.

Meanwhile, the conversion rate among iOS users has increased significantly, the company says.

“This strongly suggests that the increase is due to Apple finally enforcing the Ban through Executive Order 2025,” Spotify wrote. In addition, the company adds that it is beginning to see an impact on audiobook purchases three days after the launch of the new options.

Spotify declined to share specific numbers related to the growth when contacted for comment.

The filing joins documents from Microsoft and other companies in support of Epic Games as Apple attempts to appeal a court injunction that has crippled its business on the U.S. App Store.

Apple does not want to comply with the court’s decision, which it is appealing, until all legal issues are fully resolved.

For the same reason, it also tried to remove Epic Games’ Fortnite from the App Store, but the judge pressed Apple to allow the game to return to the App Store or return to court to explain why Apple is not complying with the court’s decision.

On Tuesday, Fortnite appeared in the US App Store after a five-year break.

The case between Apple and Epic is currently ongoing in the US Court of Appeals for the Ninth Circuit. Apple filed an emergency motion to revert to its old policy while the appeal is pending. However, the court decided not to grant the motion, stating that the panel would follow the standard briefing schedule and then rule on the motion in “due course.”

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