How it works: Pay by bank for iOS in-app purchases

Apple recently updated its App Review Guidelines to allows iOS apps in the United States to link out to external payment options. The company's App Review Guidelines state:

“Developers may apply for entitlements to provide a link in their app to a website the developer owns or maintains responsibility for in order to purchase digital content or services. These entitlements are not required for developers to include buttons, external links, or other calls to action in their United States storefront apps.” 

In other words, U.S. iOS apps can now include buttons, external links, or other calls to action that direct users to complete digital purchases on the developer’s own website.

For developers, this creates new flexibility in how digital purchases are completed — including the ability to introduce additional payment methods such as pay by bank.

Pay by bank is the most affordable way to accept online payments in the United States. It’s also widely used across many common iOS use cases like gaming, e-commerce, and subscriptions.

In this article, you will learn how to use an external checkout flow to accept in-app purchases with pay by bank.

What is pay by bank?

Pay by bank lets customers connect their bank account to make payments online. Instead of entering card details, users authenticate directly with their bank through a secure API connection and approve the transaction. Payments are processed over the ACH network.

Pay by bank is widely used across industries such as online gaming, subscriptions, and e-commerce as a strategic addition to the payment flow for lower processing costs, strong risk controls, and durable customer connections.

Because pay by bank uses API-based bank connections, customers use their online banking app to link their bank and approve the transaction. This provides powerful advantages like:

• 20% higher conversion (compared to manual data entry solutions)
• Accurate risk prediction and management
• Increased ACH approvals and minimized returns
• User recognition across merchants*

*This functionality is unique to Aeropay.

How pay by bank works for iOS apps

Under Apple’s updated U.S. guidelines, digital purchases can be completed through an external web checkout.

A typical flow looks like this:

1. User clicks an externally linked button inside the iOS app
2. User is directed to the developer’s web checkout
3. User selects “Pay by Bank”
4. User securely logs into their bank
5. Payment is authorized
6. User is redirected back to the app
7. Purchase is complete

Once a user links their bank account, future transactions can be completed in seconds using secure re-authentication.

This creates a fast, familiar experience while giving developers more control over their payment stack.

“iOS developers have a golden opportunity to optimize their payments right now. Pay by bank is a natural fit to strategically reduce costs, lower involuntary churn, and set up repeatable 1-click payments.”
‍
— Nathan Paredes, Head of Revenue

Why developers are adding pay by bank

Developers are turning to pay by bank to improve payment economics while maintaining a fast, familiar checkout experience.

Key advantages include:

Cost efficiency

Because there are no interchange fees, ACH processing fees can be 50% lower than card network costs. This helps improve margins, especially for high-volume or subscription-based apps.

Strong approval rates

Bank-level authentication and real-time verification help approve more legitimate transactions while blocking bad actors. Compared to traditional ACH payments, Aeropay customers typically see 40% higher approvals.

Less involuntary churn

Bank accounts remain valid for 14+ years longer than card numbers, reducing involuntary churn from expired cards and keeping subscriptions active longer.

Fast repeat payments

Once linked, returning users can complete payments in seconds.

Considerations before adding pay by bank

Apple’s new rules only apply to apps on the U.S. App Store. If your app is available internationally, you’ll still need to comply with regional restrictions or apply for entitlements in other storefronts.

While Apple has officially updated its App Review Guidelines to comply with the recent U.S. court decision, most apps are still required to also offer In-App Purchases (IAP). 

Moving away from Apple’s in-app purchase system also means you’re now responsible for the full payment stack. That includes:

• Tax compliance across states or countries
• Chargeback and return management
• Refunds and buyer support
• Currency conversion and global pricing
• Fraud prevention and risk monitoring

These are all areas Apple used to handle for you. Now you’ll need to solve for them directly — or choose a partner who can.

You’ll also need to build a mobile-optimized checkout flow that keeps users engaged and confident. The last thing you want is a payment experience that creates friction or causes drop-off at the point of conversion.

Best practices for implementing external checkout

The more seamless your transition from app to checkout, the better your results. Here are a few key practices we recommend:

• Make the handoff feel intentional. Use clear messaging and branded visuals so users understand where they’re going and why.
• Feature pay by bank prominently. Position it as the preferred option to guide behavior and reduce costs.
• Offer smart incentives. Consider passing savings back to the user through rewards, discounts, or faster fulfillment.
• Monitor performance closely. Track fraud attempts, payment failures, and UX friction points to optimize your flow over time.
• Build trust early. Use strong language, clean visuals, and transparent information to keep users engaged from link click to purchase complete.

Getting started 

Adding pay by bank to your iOS app gives you full control over your payments and a clear path to improved margins.

Choosing the right partner is just as important.

Aeropay’s pay by bank platform is designed for U.S. businesses, and gives you:

• 90%+ approval rates 
• 50% lower processing costs
• Real-time fraud detection to block bad actors before they transact
• Seamless user experience with one-click re-authentication
• Built-in compliance to reduce operational risk
• End-to-end customer support to protect your brand

Pay by bank gives iOS developers a powerful new lever to improve margins, strengthen authorization rates, and build more durable customer relationships.

‍Get started today and launch your new in-app experience.