Substack enables direct iOS subscriptions with in-app purchases

Newsletter publishing platform Substack announced on August 18, 2025, that it has enabled in-app purchases for all paid publications in its iOS application, marking a significant shift in how readers can subscribe to content creators directly through mobile devices.

According to Substack's announcement, Apple now permits the platform to include external links for paid subscriptions in the iOS app in the United States while simultaneously requiring all publications to offer in-app purchase options. The Substack app drives more than 30% of all paid subscriptions, making it a substantial source for both discovery and monetization according to the company's data.

Previously, subscribers could not upgrade to paid subscriptions directly within the iOS application. The new implementation presents U.S.-based users with two purchasing options: a web-based checkout flow and Apple's in-app purchase system. For international users outside the United States, only the Apple in-app purchase option remains available.

The platform has automatically enabled in-app purchases for more than 30,000 Substack publications. According to the announcement, early testing suggests these additional subscription options help bring in more paid subscribers, with some creators reporting immediate growth in sign-up rates.

Apple's commission structure takes up to 30% of subscription revenue in the first year, dropping to 15% in subsequent years. To protect creator earnings, Substack has implemented automatic price adjustments that increase the displayed cost for iOS app purchases. This means subscribers using Apple's in-app purchase system pay approximately 30% more than those using web-based subscriptions.

For a publication priced at $30 monthly through web checkout, iOS app subscribers would see a price closer to $39 monthly according to explanations provided by Substack staff. Web-based subscribers continue paying the original pricing structure without changes.

The payment processing timeline differs significantly between the two systems. Traditional web subscriptions maintain Substack's standard payout schedule, while Apple in-app purchases involve a 45-day payment delay. According to Substack's FAQ documentation, "for all IAP subscriptions purchased in January, you can expect to see earnings in your Stripe account by mid-March."

Creators cannot disable the in-app purchase option, as Apple requires it for all paid publications distributed through the App Store. However, publishers can adjust settings to disable the automatic price adjustment, though this would result in reduced revenue from Apple-processed subscriptions equal to Apple's commission percentage.

Several Substack creators have expressed concerns about the mandatory nature of the change. Sean Tubbs, who operates Charlottesville Community Engagement, stated his immediate displeasure: "I will be disabling this instantly as Apple takes a large cut for almost no benefit to me at all." Upon learning that disabling was not possible, he added: "This move eliminates a level of control in a way that provides me no benefit and further erodes my trust in Substack."

The technical implementation involves subscriber relationship management complexities. For traditional subscriptions, creators maintain direct access to subscriber information and can manage relationships through Substack's standard tools. Apple in-app purchase subscribers require different management approaches, with subscription cancellations and refunds processed through Apple's systems rather than Substack's platform.

Apple's recent regulatory challenges have resulted in modified App Store policies, particularly following Epic Games' contempt ruling in April 2025. However, these changes primarily affect external purchase links in the United States, and do not eliminate the requirement for in-app purchase availability.

The implementation affects creator revenue streams differently based on subscriber behavior and geographic location. International subscribers face the highest effective price increases, as currency conversion factors compound Apple's commission structure. Some creators report price increases approaching 45% rather than the anticipated 30%, particularly for publications operating in non-dollar currencies.

Substack has built migration tools allowing creators to export subscriber relationship data if needed, though the complexity of managing multiple payment systems creates operational challenges for publication owners. The platform continues operating under its standard 10% commission structure for web-based subscriptions while adding Apple's commission layer for iOS app purchases.

The change reflects broader industry tensions between platform operators and content creators regarding revenue sharing and control over subscriber relationships. Similar implementations by platforms like Patreon have generated comparable creator concerns about payment delays and reduced autonomy over pricing structures.

For subscribers, the change presents varying experiences based on location and platform choice. U.S.-based users benefit from maintaining pricing options, while international users face mandatory price increases when subscribing through iOS devices. The impact on conversion rates and subscriber acquisition remains unclear as the implementation is still in early stages.

Substack's announcement positions the change as expanding monetization opportunities for creators while acknowledging the challenges of Apple's commission requirements. The platform reports that creators using multimedia content including video and audio grow revenue 2.5 times faster than text-only publishers, suggesting broader monetization strategies beyond subscription pricing.

Timeline

• August 2020: Epic Games introduces direct payments in Fortnite, sparking legal battle with Apple
• 2021: Original Epic vs. Apple trial results in injunction against anti-steering practices
• January 19, 2024: Apple introduces StoreKit External Purchase Link Entitlement for US developers
• August 12, 2024: Apple expands external purchase links in EU under Digital Markets Act compliance
• April 30, 2025: Epic Games wins contempt ruling against Apple for App Store anti-steering violations
• May 1, 2025: Apple eliminates commissions on external purchases for US developers
• May 3, 2025: Stripe announces tools helping iOS developers bypass Apple's commission structure
• July 18, 2025: Substack raises $100 million funding while exploring advertising integration strategies
• August 18, 2025: Substack enables mandatory in-app purchases for all iOS publications

Summary

Who: Substack newsletter platform, Apple, and more than 30,000 publication creators affected by mandatory in-app purchase implementation

What: Introduction of Apple in-app purchase system for iOS subscriptions with automatic price adjustments to offset Apple's commission, alongside mandatory 45-day payment delays for creators

When: Announced and implemented on August 18, 2025, affecting all paid publications on Substack's iOS application

Where: Initially affects United States users with dual purchasing options, while international users face mandatory Apple in-app purchase system exclusively

Why: Apple's App Store requirements mandate in-app purchase availability for all subscription applications, forcing Substack to implement the system despite creator concerns about reduced control and payment delays

PPC Land explains

In-App Purchase (IAP): Apple's proprietary payment system that processes transactions directly through iOS applications, taking a commission of up to 30% in the first year and 15% thereafter. For Substack, this system creates a secondary payment channel alongside traditional web subscriptions, requiring creators to navigate dual revenue streams with different processing timelines and fee structures.

Commission Structure: The percentage-based fee system that platforms charge for facilitating transactions between creators and subscribers. Apple's commission ranges from 15-30% depending on subscription duration, while Substack maintains its standard 10% fee on web transactions, creating layered costs for iOS subscribers that can exceed 40% in total platform fees.

External Purchase Links: Web-based checkout options that redirect users from mobile applications to external websites for payment processing, bypassing app store commission structures. While Apple has permitted these links in the United States following legal challenges, the company still requires in-app purchase availability as a mandatory alternative option.

Price Adjustment: Substack's automatic pricing modification system that increases subscription costs for iOS app purchases to offset Apple's commission, ensuring creators receive comparable revenue regardless of payment method. This mechanism can result in price increases of 30-45% for mobile subscribers compared to web-based pricing.

Payment Delay: The extended timeline between subscription purchase and creator payout specific to Apple's in-app purchase system, requiring up to 45 days compared to Substack's standard payment schedule. This delay affects creator cash flow and represents a significant operational change from traditional web-based subscription processing.

Subscription Management: The administrative systems and processes creators use to track, modify, and maintain subscriber relationships across different payment platforms. Apple in-app purchases create separate management requirements, with cancellations and refunds processed through Apple's systems rather than Substack's native tools.

Creator Revenue: The income streams generated by content publishers through various monetization methods including subscriptions, sponsorships, and affiliate programs. Substack's iOS changes directly impact these revenue calculations by introducing variable commission structures and payment timing that creators must factor into their business planning.

Platform Requirements: The technical and policy mandates that app stores impose on applications seeking distribution through their systems. Apple's requirement for in-app purchase availability represents a non-negotiable compliance standard that platforms like Substack must implement regardless of creator preferences or business impact.

Subscriber Relationships: The direct connections between content creators and their paying audiences, encompassing payment processing, communication channels, and customer service responsibilities. The iOS implementation fragments these relationships by introducing Apple as an intermediary in subscription management and dispute resolution processes.

App Store Policies: The comprehensive guidelines governing application behavior, monetization methods, and user experience standards within Apple's iOS ecosystem. Recent legal challenges have modified these policies regarding external purchases while maintaining core requirements for in-app purchase integration, creating complex compliance scenarios for subscription-based platforms.