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The case for a third distribution channel
New Google and Apple policies are changing the economics of app distribution. Alternative payments are only part of it. This introduces a case for adding a third distribution channel: what changed, what it takes to stand one up, and how to test it without betting the roadmap.
What changed
Rulings, settlements, and new laws in the US, EU, UK, Japan, Korea, and Australia have changed how Google and Apple charge developers. Both companies have redesigned their fee structures to maintain an economic relationship with transactions that originate in their ecosystems. That’s why adding DTC checkout to a store app doesn’t reduce fees as much as it previously did.
Why add a third distribution channel
For most developers, this is not an argument for abandoning Google Play or the App Store. It is about adding another distribution channel alongside them.
The traditional journey
Marketing
App Store
App
User
A store-distributed app can use alternative billing or external web payments and stay tied to the store's economics.
The off-store journey
Marketing
App
User
With an off-store app, the developer takes ownership of the install path, payments, updates, and ongoing customer relationship.
Google Play / App Store
- Store discovery
- Organic acquisition
- Existing user bases
- Merchandising
- Familiar consumer experience
Alternative app stores
- Incremental users
- Additional geographic reach
- Regional distribution
- New acquisition opportunities
Off-store
- Direct distribution
- Native DTC payments
- Ownership of the customer relationship
- Merchandising
- Reduced store dependence
How Google and Apple are changing store economics
Google and Apple are giving developers more flexibility in how payments are processed, but both can still charge fees on transactions tied to their ecosystems.
What this means for off-store distribution
The platforms differ most clearly once distribution moves outside the store:
- On Android, an app distributed and transacted entirely outside Google Play is not subject to the Play service fee
- In the EU, Apple still charges a 5% Core Technology Commission on apps distributed outside the App Store
That difference makes Android the more straightforward starting point for off-store distribution, and shifts the bigger decision from payment method to distribution.
June 30, 2026
EEA, UK, and US move to Google's new service fees and the 5% Play billing fee.
Sept. 30, 2026
Australia and Japan move to the new fee structure. Apps Experience and Games Level Up rate cards become available. Android developer verification requirements begin in Brazil, Indonesia, Singapore, and Thailand.
Oct. 1, 2026
Apple's EU business terms take effect, including the 5% Core Technology Commission.
Dec. 31, 2026
South Korea moves to the new fee structure and programs.
Sept. 30, 2027
Google's fee structure reaches the rest of the world.
Google Play
From June 30, 2026, Google separated its Play service fee from its billing fee in the US, UK, and EEA. Other regions follow through Sept. 30, 2027.
The service fee applies whether a transaction uses Google Play Billing, alternative billing, or an external web link. The separate Play billing fee applies only when Google Play processes the payment.
Standard rates
Auto-renewing subscriptions
Other transactions — new installs
Other transactions — existing installs
First $1M annual earnings
10%
10%
10%
Standard service fee
10%
20%
25%
Apps Experience / Games Level Up programs (rate card available from Sept. 30, 2026)
10%
15%
20%
Initial purchase of a paid app or game (Play Store, standard rate)
—
20% + billing fee
25% + billing fee
Play Billing fee (US, UK, EEA)
+5%, only when Google Play processes the payment. Not charged on alternative billing or external web links.
Standard rates
First $1M annual earnings
Auto renewing subscriptions
10%
Other transactions — new installs
10%
Other transactions — existing installs
10%
Standard rates
Standard service fee
Auto renewing subscriptions
10%
Other transactions — new installs
20%
Other transactions — existing installs
25%
Standard rates
Apps Experience / Games Level Up programs (rate card available from Sept. 30, 2026)
Auto renewing subscriptions
10%
Other transactions — new installs
15%
Other transactions — existing installs
20%
Standard rates
Initial purchase of a paid app or game (Play Store, standard rate)
Auto renewing subscriptions
—
Other transactions — new installs
20% + billing fee
Other transactions — existing installs
25% + billing fee
Standard rates
Play Billing fee (US, UK, EEA)
Auto renewing subscriptions
+5%, only when Google Play processes the payment. Not charged on alternative billing or external web links.
For one-off purchases, existing installs can carry higher fees than new installs. Auto-renewing subscriptions are 10% either way.Transactions completed within 24 hours of following an external web link follow the rates above, with one exception: non-recurring purchases from existing installs are charged 20% at the standard rate, or 15% on the Apps Experience and Games Level Up programs.Alternative payment methods can also add operational requirements. In applicable markets, developers may need to offer Google Play Billing alongside another payment option, follow Google's UX rules, handle support and refunds, and report authorized transactions.
Apple
From Oct. 1, 2026, Apple’s new EU business terms take effect. The initial acquisition fee and store services fee are eliminated, while Apple introduces a 5% Core Technology Commission on digital transactions in apps distributed outside the App Store.
EU business terms, from Oct. 1, 2026
Standard rate
Reduced rate
App Store app using Apple In-App Purchase (reduced rate also applies to auto-renewing subscriptions after their first year)
26%
15%
App Store app using alternative payment processing
20%
10%
Apps Experience / Games Level Up programs (rate card available from Sept. 30, 2026)
15%
10%
Initial purchase of a paid app or game (Play Store, standard rate)
5%
5%
EU business terms, from Oct. 1, 2026
App Store app using Apple In-App Purchase (reduced rate also applies to auto-renewing subscriptions after their first year)
Standard rate
26%
Reduced rate
15%
EU business terms, from Oct. 1, 2026
App Store app using alternative payment processing
Standard rate
20%
Reduced rate
10%
EU business terms, from Oct. 1, 2026
Apps Experience / Games Level Up programs (rate card available from Sept. 30, 2026)
Standard rate
10%
Other transactions — new installs
15%
Reduced rate
10%
EU business terms, from Oct. 1, 2026
Initial purchase of a paid app or game (Play Store, standard rate)
Standard Rate
5%
Reduced rate
5%
EU only. Reduced rates apply to developers in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program.
Apple also retains Notarization requirements for apps distributed outside the App Store, along with requirements around payment choice, parental controls, and link-outs.
What it takes
Creating the APK is one part of the equation. Going off-store means taking responsibility for distribution, installation, updates, measurement, and other functions the app store normally handles. An off-store strategy has to solve four core problems:
An off-store strategy has to solve four core problems:
problem 1
Distribution
How does the app reach the device without a store listing?
problem 2
Installation
How does the user complete the install past Android's warnings and redirects?
problem 3
Updates and app management
How does the app stay current, and who manages it on the device, when Google Play is no longer doing either?
problem 4
Discovery and growth
How do you acquire and retain users without store search and merchandising?
Choose your distribution and payment path
Your distribution model determines how the app reaches the user. Your payment model determines how transactions are processed. The two decisions are connected.
Path
Distribution
Play service fee
Payment options
What you need
Traditional Google Play app
Play Store
Fee applies
Play Billing
Verified Google developer account
Play app with user choice / alternative billing
Play Store
Fee applies
Play Billing; Alternative billing
Verified account; Billing choice enrollment
Play app with external offers / links
Play Store
Fee applies
Play Billing; External web links
Verified account; External offers enrollment
Off-Play distribution
Direct
No Fee
Your chosen payment provider or method
Verified account; DT onboarding
Path
Traditional Google Play app
Distribution
Play Store
Play service fee
Fee applies
Payment options
Play Billing
What you need
Verified Google developer account
Path
Play app with user choice / alternative billing
Distribution
Play Store
Play service fee
Fee applies
Payment options
Play Billing; Alternative billing
What you need
Verified account; External offers enrollment
path
Play app with external offers / links
Distribution
Direct
Play service fee
Fee applies
Payment options
Play Billing; External web links
What you need
Verified account; External offers enrollment
Path
Off-Play distribution
Distribution
Play Store
Play service fee
No fee
Payment options
Your chosen payment provider or method
What you need
Verified account; DT onboarding
Google Play fees vary by region, developer size, program eligibility, and transaction type. Confirm current rates before modeling any distribution strategy.
What changes off-store
In a store-distributed app, DTC payments are an alternative to store billing. The store still controls distribution, and store fees may still apply to subsequent transactions.
Store-distributed app
Store
App
Store or DTC payment
Off-store app
User
App
DTC payment
In a dedicated off-store app, DTC payments are built into the experience from the start.
The developer controls the acquisition path, payment experience, customer relationship, and revenue flow.
Common providers include Xsolla, Appcharge, Stash, Stripe, and Adyen. Compare them based on revenue share, Merchant of Record support, supported payment methods, geographic coverage, product capabilities, and integration effort.
How can DT help
Across its global footprint, DT provides the direct-to-device infrastructure for distributing, installing, updating, and growing Android apps outside app stores.
DT enables the distribution layer, while the developer maintains control of the app, payments, and customer relationship.
What DT Launchpad supports
Your distribution model determines how the app reaches the user. Your payment model determines how transactions are processed. The two decisions are connected.
Distribution
DT delivers APKs directly to Android devices through preloads across its OEM and telco footprint, which spans more than one billion devices. No store listing required.
Installation
SingleTap installs apps without a store handoff. Developers can use SingleTap links for lighter integrations or the SDK for deeper control, with installs triggered from websites, banners, UA campaigns, or app-to-app journeys on Android.
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Updates and app management
SingleTap can also deliver direct-to-device updates, so removing Google Play from distribution doesn't strand users on old builds. Off-store, app management moves to you rather than the store.
Discovery and growth
Run UA campaigns that install the app directly powered by SingleTap with no store handoff. App Agent surfaces off-store apps for organic discovery on supported devices, and takes no cut of your app revenue.
Payments remain with your chosen DTC provider, while the app and customer relationship remain with you.
Path to success
Off-store does not have to replace your store strategy.
Step 1
Start with one title
Pick an app weighted toward in-app purchases, where the fee gap is widest, and one whose users you already understand. Subscription revenue is 10% on Play either way. A new title makes it hard to separate channel results from product results.
- Targeting and LTV optimization powered by proprietary Ignite Graph signals and DT iQ algorithms
- Global network of 82k+ apps with direct SDK integrations and 1B+ devices with Ignite
Step 2
Match the store build
Run the off-store version at feature parity with your store app. An under-invested build produces a misleading read, and the channel gets written off on bad data rather than real results.
Step 3
Buy the same traffic
Run identical acquisition mechanics down both paths, so the only variable is what happens after the click.
Step 4
Compare and scale
Measure acquisition cost, retention, and long-term user value across both, then expand what performs.
Prepare your app for off-store distribution
Before launch, audit any part of your Android stack that assumes a legitimate install must come from Google Play.
1
Disable Google Play Automatic Integrity Protection
2
Review your Play Integrity API configuration
3
Complete Google Developer Verification
4
Generate a dedicated off-Play APK
5
Establish your versioning strategy
6
Validate MMP support
7
Audit third-party SDK dependencies
8
Define your update strategy
Pre-launch check
DT recommends completing validation at least two weeks out.
New-user onboarding works
Returning-user login and authentication work
Guest-account creation works
Cloud saves and live-ops events work
Push notifications work
Payment and subscription flows work
Merchant of Record impact is reviewed
In-app purchases and monetization are verified
Install and upgrade paths work
Crash reporting and analytics are verified
Backend entitlement checks pass
The store fee follows the install, not the checkout
Changing the checkout still means paying the store. Changing the distribution doesn't. On Play, a one-off purchase from an existing install costs 25%, while off-store, no Play fee applies.
Learn more
Tell us what you are distributing and where, and DT can walk through what an off-store build would require.