Spotify Sees Subscription Boost from New External Payment Options on iOS

Spotify has reported a significant increase in iOS users upgrading to its Premium subscription since the company updated its app to take advantage of new rules allowing external payment options.

In a recent legal filing, Spotify stated that its internal data shows the 2025 court order requiring Apple to allow developers to direct customers to external payment methods has already had a positive impact on Spotify's business.

Specifically, Spotify said the new "Premium Destination Page" in its iOS app, which explains subscription pricing and provides a link to Spotify's website to complete the purchase, has led to a "substantial increase" in iOS users upgrading to Premium.

Prior to the court order, Spotify was not able to direct users to external payment options, which limited its ability to convert free users to paid subscribers on iOS. But now with the new functionality, Spotify says the conversion rate from free to Premium has increased significantly among iOS users, compared to a more "relatively constant" rate on Android where Spotify has long been able to offer external payment options.

Spotify also noted it is starting to see positive impacts on audiobook purchases just three days after launching the new product options in its iOS app.

The filing from Spotify supports the legal battle between Epic Games and Apple over the tech giant's restrictive App Store policies. Apple has appealed the 2025 court order and is trying to revert to its previous rules requiring all in-app purchases to go through Apple's payment system and subject to its 30% commission.

However, the appeals court has so far denied Apple's request to reinstate the old rules while the legal fight continues. This means developers like Spotify can continue to leverage the ability to direct users to external payment options, which appears to be paying dividends for their subscription businesses.