What is an In-App Subscription and How to Implement It [5 Top Tools]

Do you want to unleash a lucrative recurring revenue stream that keeps users engaged while continually funding innovation? Curious why leading apps from Spotify to Headspace to Canva leverage subscriptions? In this comprehensive guide, I‘ll explain what in-app subscriptions are, why they are so powerful, and how to successfully integrate these capabilities into your mobile applications utilizing top subscription management platforms.

In-app subscriptions have seen explosive adoption. According to Sensor Tower, subscriptions now drive a staggering 71% of total spending on the iOS platform.

This growth likely aligns to the human psychology of favoring ongoing access over one-time purchases. By their nature, subscriptions drive higher engagement and loyalty – precisely what we as developers want from our best app customers.

Now let‘s dive deeper on what in-app subscriptions entail before covering the technical integration and top tools to enable a seamless user experience.

What is an In-App Subscription?

An in-app subscription charges users a recurring fee to access premium content and features within an app. It works by allowing users to sign up for an ongoing payment plan tied to their app account. As long as their subscription remains active, they can continue accessing the exclusive gated content and capabilities.

Subscriptions monetize access to:

  • Ad-free experiences
  • Unlimited usage or story consumption
  • Exclusive new feature sets
  • Early access benefits
  • Multi-platform accessibility

Now that we‘ve defined the subscription model, let‘s look at why integrating these capabilities can accelerate your revenue while increasing retention.

4 Reasons Why In-App Subscriptions Are Powerful

1. Predictable Recurring Revenue Stream

In-app subscriptions provide an ongoing revenue stream that can be forecasted month-over-month. This helps reduce reliance on more variable business models like in-app advertising. Top apps generate up to 70% of revenue from subscriptions after maturity.

2. Higher Lifetime Value From Best Customers

The most engaged users convert to paid subscribers. By continually supporting their needs with new features and content, you can maximize customer lifetime value thanks to reduced churn risk and retention exceeding 85% annually.

3. Direct Insights Into Highest Value Features

Aligning premium features to subscription plans allows you to experiment with different models while measuring indicator metrics around adoption and churn. This provides data-driven insights into the features and pricing structures resonating most with your customers.

4. Flexible Monetization Structuring

Subscriptions allow flexibility to optimize price points, free trials, discounts for annual plans, cross-platform entitlements, and addon packages in response to usage trends. Offering a good -> better -> best set of plans is ideal.

Now that you know the immense benefits of subscriptions, how can you actually enable these capabilities within your mobile apps?

How to Implement In-App Subscriptions

While apps distributed through iOS and Android enable you to charge one-time upfront in-app purchases, setting up and managing recurring subscription plans requires deeper integration with third-party tools.

Here are the 4 key technical components:

1. Client SDK

Installed directly in your iOS, Android, web apps to handle subscription signups, status checks, and delegate auth to server.

2. Server Component

On your infrastructure to sync subscription state across apps/users and process updates via webhooks.

3. Payment Provider Integration

To securely process credit cards and other payment methods selected by the user.

4. External Service Integrations

Tools for managing customer data, notifications, support tickets, and analytics.

While handling subscriptions natively does provide more control, leveraging a third-party management platform dramatically accelerates your time-to-value.

These leading solutions include:

  • RevenueCat
  • GoodBarber
  • Qonversion
  • Apphud
  • Paddle

Let‘s explore the capabilities of each to find the right fit for your app.

Top 5 In-App Subscription Service Platforms

1. RevenueCat – Robust Mobile Subscription Infrastructure

RevenueCat is one of the most popular subscription management platforms purpose-built for mobile apps.

It focuses exclusively on providing an enterprise-grade recurring revenue infrastructure handling:

  • IOS and Android SDK integration
  • Subscription status monitoring
  • Retry workflows for failed payments
  • Subscription analytics and reporting
  • Cross-platform entitlement synchronizing
  • Customer lifecycle tracking
  • Webhooks to sync data to external systems

Notable RevenueCat customers include Canva, Wondery, Buffer, Headspace, Calm, and Mint.

The startup reports developers typically integrate RevenueCat‘s SDKs in less than 30 minutes. From there, you gain access to a dedicated customer success team to tailor implementation and answer ongoing questions.

Pricing starts at $99/month supporting up to $10k in subscription revenue. Enterprise quotes available for high-volume apps.

RevenueCat is likely the best option for apps already seeing significant traction measuring in the tens of thousands of MAU.

2. GoodBarber – Build and Manage Apps Visually

GoodBarber provides an app builder platform with integrated subscription management capabilities.

It allows less technical users to visually build iOS and Android apps via a web-based dashboard connected to templates and plugins.

Beyond app creation, standout subscription features include:

  • 30-day free trial period configuration
  • Auto-renewing subscription workflows
  • User account dashboard to manage subscriptions
  • Accept payments via Stripe
  • Subscription status and metrics visibility

Ideal customer examples are indie developers, bloggers, educators, fitness studios, and other individuals looking to quickly build their own white label mobile app leveraging premium subscriptions.

Pricing starts at $17/month for robust subscription management capabilities alongside the broader app creation toolkit.

For non-developers, GoodBarber provides the easiest path to launching iOS and Android apps with subscriptions.

3. Qonversion – Subscription Analytics and Campaigns

While platforms like RevenueCat handle the baseline subscription infrastructure, Qonversion optimizes end-to-end user experiences via data and engagement tools tailored to conversions.

Core capabilities provided:

  • Subscription monitoring and reporting
  • Subscription status across Android and iOS
  • Targeted push notifications to re-engage users
  • Built-in A/B testing capabilities
  • Attribution and campaign management

Qonversion is used by mobile game developers, digital publishers, video streaming services, and other recurring monetization models to maximize signups and retention.

If your app already handles subscriptions via native SDKs or an existing provider, Qonversion can still layer on advanced analytics and automation.

Pricing starts at $999/month with enterprise tiers available. Schedule a consultation for customized quoting.

4. Apphud – Unified Subscription Growth Platform

Apphud delivers an integrated platform covering technical subscription implementation alongside app store optimization, user acquisition campaign management, and advanced analytics.

On the subscription side specifically, Apphud provides:

  • iOS and Android SDKs
  • Global subscription syncing across platforms
  • Subscription dashboards and analytics
  • Automated email receipts and invoices

The startup is focused primarily on larger media publishers, video streaming services, fitness brands, e-learning platforms and other consumer-facing subscription apps.

Pricing is customized based on expected monthly active users and revenue goals. Contact Apphud for detailed subscription monetization packages.

For apps searching for an all-in-one growth accelerator covering the technical, analytical and marketing capabilities – Apphud delivers on that promise.

5. Paddle – Payments Infrastructure for SaaS

While the other platforms focus exclusively on mobile app subscriptions, Paddle provides subscription tools for all digital apps – whether web, mobile, desktop or IoT.

For in-app purchases specifically, Paddle offers:

  • iOS and Android SDKs
  • Built-in support for PayPal alongside other payment options
  • Tax calculations and compliance
  • Checkouts and account portal customization

Paddle targets SaaS companies first with SDK integrations, recurring billing, and global payments infrastructure tailored to software vendors.

If your app leans more toward a web-first subscription model (or already uses Paddle), continuing with them for mobile SDK capabilities ensures consistency.

Pricing consists of a flat 5% + $0.50 commission per transaction. Volume discounts available.

Evaluating Subscription Service Tools for Your App

When comparing options, start by listing required capabilities around:

  • Platforms (pure mobile vs web + mobile)
  • Target customer profiles
  • Pricing models
  • Existing vs. needed integrations
  • Timelines for implementation
  • Available developer resources
  • Budget constraints

The platforms highlighted here represent top solutions trusted by leading subscription apps to manage recurring revenue streams, synchronize access across devices, retain loyal users, and maximize customer lifetime value.

By matching core competencies to your needs, you can determine the best fit to accelerate time-to-value. While feature depth varies across the vendors, even starting with basic subscription capabilities will unlock that recurring revenue flywheel priming your app for long term success.

Now over to you! Does your app already support subscriptions or are you just getting started? What tools seem most relevant? I‘m happy to offer any other advice as you evaluate options. Just let me know.