#246: How D2C is reshaping game monetization with Chris Hewish, President of Xsolla

Building a sustainable game business has never been more complex—or more full of opportunity. As platforms evolve and user acquisition costs rise, developers are rethinking how they monetize and engage their players directly. In this episode, Chris Hewish, President of Xsolla, breaks down the rise of Direct-to-Consumer (D2C) transactions and how Xsolla’s Web Shop is helping game studios reclaim ownership over their player relationships. We explore how going D2C opens new revenue streams, what infrastructure developers need to support it, and why the Web Shop is becoming more than just a payment layer—it’s turning into a strategic channel for growth, loyalty, and long-term success. Today’s topics include: Why D2C model's popularity grows among mobile game development studios What is Web Shop and how it works How Xsolla helps developers handle regulatory compliance, fraud prevention, global payments, and more Building stronger connections with game players via D2C presence What's next for the Web Shoo and D2C What Chris would like to change in mobile space Links and Resources: Chris Hewish  on LinkedIn Xsolla website Business Of Apps - connecting the app industry Quotes from Chris Hewish “When you go direct-to-consumer, you get the full power of e-commerce, the full power of the web for discovery, and the full power of building community. It creates a better, healthier business environment for your games.” “It’s not just putting your in-game store on the web. It’s about doing much more with it—rotating sales, personalized offers, regional pricing, loyalty programs, and having full control over your player data.” “Going off-platform sounds great, but now you’re responsible for taxes, VAT, compliance, and customer support. That’s why you need a partner who can be your merchant of record—handling it all while you focus on making great games.” Host Business Of Apps - connecting the app industry since 2012

September rolls on—Apple’s big reveal is behind us, and the tech world is still catching its breath. With the unveiling of the iPhone Air, Apple has once again raised the bar in mobile innovation. But while hardware dominates headlines, we’re zooming in on a quieter, yet equally game-changing shift: the migration of payments from app stores to the web. This week’s episode of The Business of Apps Podcast features another App Talk special—conducted by David Murphy with Andrey Shakhtin, Founder & CEO of FunnelFox. The topic? The future of web-to-app funnels for app growth. Andrey brings a wealth of insight from helping leading apps optimize their revenue stacks. He explains why the move to web payments isn’t just about saving fees—it introduces new friction points in refunds, compliance, and orchestration that many teams overlook. You’ll also hear how performance, UX, and product-led strategies are becoming central to making the transition stick. If your team is exploring app-to-web monetization—or already deep in the trenches—this episode is your playbook for avoiding costly missteps. Let’s dive in: here’s Andrey Shakhtin, CEO at FunnelFox Today’s topics include: More app developers are shifting payments from in-app to web to gain control and increase revenue, but the shift comes with serious operational complexity. Web-to-app transitions often neglect the payment flow, leading to revenue leakage and conversion drop-offs due to poor infrastructure or oversight. Optimizing the payment stack is now critical, and requires orchestration tools and performance visibility similar to what’s used in user funnels. Many apps make the mistake of treating payments as an afterthought, ignoring failure handling, tax compliance, and retry logic. The future lies in hybrid web–app monetization models, giving developers more flexibility and users more choice. Speed, clarity, and trust in the payment flow are essential, especially as users become less tolerant of friction or confusion at checkout. Links and Resources: Andrey Shakhtin on LinkedIn FunnelFox website Business Of Apps - connecting the app industry Quotes from Andrey Shakhtin “Web-to-app funnels unlock attribution, reduce payment commissions, and give developers the flexibility to design user journeys that simply aren’t possible inside the app stores.” “The main mistake I see is teams trying to build everything in-house. It slows down experimentation, drains resources, and pulls focus away from the product itself.” “The future of app growth will belong to the teams that experiment fast, diversify acquisition channels, and master web-based monetization.” Host Business Of Apps - connecting the app industry since 2012

September is in full swing - Apple is about to host its highly anticipated event - fingers crossed the new iPhone will be awesome! “Back to School” theme is everywhere you look; one of the things that kids need to learn about is obviously finance. OK, not for kids but for app brands and developers, we want to share yet another App Talk interviewconducted by Peggy Anne Salz with Andrew Davies, Chief Innovation Officer at Paddle. Yes - you will hear about innovation in the app pricing and payment; Andrew is a brilliant speaker and really knows the space. He explains how Paddle simplifies back-office complexity, enables web-to-app monetization, shares best practices in pricing and retention, highlights data-driven strategies to reduce churn, and outlines a future shaped by AI, no-code tools, and democratized monetization. Today’s topics include: Paddle’s role in solving back-office complexity: simplifying global payments, taxes, fraud prevention, and subscription management so founders can focus on product and growth. The rise of web-to-app monetization: why app developers are diversifying beyond app stores and the opportunities this creates for both scaled and early-stage apps. Customer insights and best practices: pricing experimentation, retention tactics like downgrade/pause offers, and the importance of true localization. Retention strategies: macro trends like growth via reactivation, reducing involuntary churn, and Paddle’s case studies on churn prevention. Future vision: preparing for the shift of volume out of app stores, the impact of AI and no-code on app creation, and Paddle’s mission to democratize monetization. Links and Resources: Andrew Davies  on LinkedIn Paddle website Business Of Apps - connecting the app industry Quotes from Andrew Davies “We often say second time founders choose Paddle because first time round you don’t really know what the problems are that are going to come tomorrow. But second time around you think, okay, I’ll put something in place at the beginning that means I’m not building up debt for the future.” “If you are changing your price every quarter, you’ll outperform someone who isn’t by about 103% on ARPU. It’s not that every pricing change is good—it’s that you’re building a muscle for testing.” “This is not just about making business work or removing complexity. You’re actually democratizing it for everyone who’s going to be a maker—to make and to sell. Because what’s the fun of making if you can’t monetize it?” Host Business Of Apps - connecting the app industry since 2012

Yet another summer is wizzed by with a jet speed. With a few days left, we want to signify this moment by sharing with you yet another App Talk interview from App Promotion Summit London 2025, this time with Rui Mateus, CTO of Mobrand. At the interview, Rui brilliantly laid out the state of programmatic advertising for mobile apps. He touched on the need for control and transparency in programmatic, the performance-based model, scaling and rebranding, ad fraud challenges, the role of AI in programmatic, and more. Today’s topics include: Control and transparency in programmatic: why marketers now demand visibility into KPIs, performance, and audience targeting rather than just raw results. Performance-based model: Mobrand’s approach of charging advertisers only when quality users take meaningful in-app actions. Technology as core DNA: Mobrand building its own bidder, using open RTB, and positioning itself as a tech company in the ad tech ecosystem. Scaling and rebranding: maintaining momentum, keeping a lean but skilled team, and presenting Mobrand as a premium partner for app developers. Ad fraud challenges: the scale of invalid traffic, detecting fraud through behavioural analysis, and the constant “arms race” with fraudsters. Role of AI in programmatic: lowering entry barriers, enabling better audience modelling, and driving higher quality performance for advertisers. Expansion of programmatic channels: growth in connected TV (CTV), digital out-of-home, and cross-channel strategies. Client focus: subscription apps, gambling, and finance apps with long conversion funnels where performance and quality users are critical. Future vision: becoming a one-stop shop for app developers, simplifying promotion, and delivering seamless growth without unnecessary complexity. Links and Resources: Rui Mateus on LinkedIn Mobrand website Business Of Apps - connecting the app industry Quotes from Rui Mateus “I consider that Mobrand is not necessarily a marketing company. It’s a tech company. We have a very big technological background, and when you have the technology, you have the control — and then you can give that to the companies you’re working with.” “Our biggest challenge with programmatic at the moment is the amount of invalid traffic that exists on the bidstream. You think you are bidding on real users and you are not. There is a lot of bots making the whole flow as if they were users” “Our objective is to be an alternative for app developers and to provide real value. We want to cut a little bit of the complexity of this market and build a platform where everything is as seamless as possible.” Host Business Of Apps - connecting the app industry since 2012

We’re certain you’re experiencing this feeling as well - it’s as if we’re finally living in the world that was promised to us by science fiction movies. To be fair, AI has evolved into Artificial Intelligence that is indeed intelligent. While it lacks consciousness, the distinction between the two would be a topic for a separate conversation on another podcast. Today, I’ve invited Steve to assist app brands in understanding this complex landscape of Generative AI. Our goal is to empower you to make informed decisions about which AI tools to utilize, avoid common pitfalls, comprehend the skill sets your team requires, and more. Today’s topics include: How to evaluate AI tools without getting lost in comparisons between models The most common mistake people make trying to integrate AI into their work Given AI influence, what skill sets development teams need to develop What role will "middle layer" tools play in AI adoption Advice to leaders trying to help their teams adapt to rapid AI changes Links and Resources: Steve Toy on LinkedIn Memrise website Business Of Apps - connecting the app industry Quotes from Steve Toy “You don’t really care about the performance metrics of all the different models out there. What matters is whether it can do the job you need it to do well and effectively.” “The biggest mistake is not understanding the job to be done. If you just bring tools into your system without a clear goal, you end up as the proverbial hammer wandering around looking for a nail.” “Expertise is actually less important in this world. What separates those who succeed with AI from those who don’t is perseverance — the willingness to go one more round” Host Business Of Apps - connecting the app industry since 2012

When it comes to growing app revenue, there’s no shortage of advice — but separating the shiny “growth hacks” from the strategies that actually move the needle is another story. In today’s crowded subscription app market, you can’t just set a price, launch, and hope for the best. You need to understand your users, their behaviors, and the subtle levers that can turn one-time downloads into long-term customers. In this episode, I’m joined by Jens to draw on his experience both inside a subscription app team and now supporting others, Jens shares practical, tested ways to increase revenue — from smarter pricing strategies to better handling of cancellations and reactivations. If you’re building, marketing, or monetizing an app, this conversation is packed with insights you can start applying right away, whether your goal is to capture more value from your most loyal users, adapt pricing for different markets, or simply stop leaving revenue on the table. Today’s topics include: The most effective ways to identify untapped revenue opportunities Balancing global pricing strategies with local market purchasing power How to decide what innovations (new tools, APIs) are worth adopting vs which might distract from the core offering Th most overlooked techniques to reduce churn and increase reactivations The role of partnerships in creating long-term customer value Links and Resources: Jens-Fabian Goetzmann on LinkedIn RevenueCat website Business Of Apps - connecting the app industry Quotes from Jens-Fabian Goetzmann “The core offering should always come first. Value needs to be created before it is extracted—monetization works best when you’ve already built something that engages and retains users.” “Start experimenting with new customers first. They come in without preconceived notions, making it easier to test pricing, tiers, or new models without alienating your existing user base.” “Premature optimization is the biggest distraction. If your business model doesn’t work with the basics, you’re unlikely to fix it just by tweaking monetization tactics.” Host Business Of Apps - connecting the app industry since 2012

OK, how many times do you hear on your team’s meetings “You need to be more creative!” Well, I have this question: “How can I be more creative with my app’s ad creatives?” Yes, today we’re featuring another App Talk interview that covers how creative drives app growth. It was taken by our Peggy Anne Salz with Megan Evans, Creative Director at ConsultMyApp during App Promotion Summit London 2025. In this interview, Megan talked about treating app creative as a specialized, data-driven discipline — not just design — means testing systematically, embracing what works (even if it’s off-brand), integrating across the user journey, and using AI to scale strategy, not just production. Today’s topics include: App creatives deserve the same strategic focus as acquisition and product decisions. Generalist designers often miss the nuances that drive mobile conversions. “Ugly” or off-brand ads can outperform polished ones because they connect better with users. Isolating variables is key to knowing what actually works in creative testing. AI helps creative teams save time and focus on strategy by automating repetitive tasks. Creative assets for ASO, UA, and retention should work together as part of a unified strategy. Success comes from treating creative as a specialized, system-driven discipline. Links and Resources: Megan Evans on LinkedIn ConsultMyApp website Business Of Apps - connecting the app industry Quotes from Megan Evans “Sometimes it’s the one you don’t want that wins, which is difficult for brands to understand.” “Don’t change too much at once — otherwise you’re never going to understand exactly what’s moving the needle.” “Instead of spending time on things that can be automated through AI, we’re now focusing on the parts that need the human brain.” Host Business Of Apps - connecting the app industry since 2012

How is your summer so far? I hope you’re listening to this episode lying somewhere in a shadow on a beach, and with a breeze keeping you relaxed. I also hope that you are in a company of people you love to hang out with - be it your family or friends. Why? It’s because we all belong to a community, right? Yes - this is the moment when I’m tying in my intro with this week’s episode’s topic 😊 So here we go - today we’re featuring one of our latest App Talk interviews. This time, Peggy Anne Salz interviewed Kenzie Wilson, GTM Lead - AI Moderation at Stream - the platform that helps apps build real-time experiences that scale. Kenzie talks about why community is the key to app stickiness and how Stream’s APIs power real-time chat, feeds, video, and AI moderation for millions of users. You’ve heard it right - millions! Today’s topics include: Why in-app communities matter: Building social features directly in your app boosts retention and gives users a reason to return. Strava’s evolution: A case study in transforming utility apps into thriving communities. Flexible, fast integration: Stream’s API lets even mature apps easily add chat, feeds, and video—with AI-powered moderation tailored by industry. Unexpected use cases: From HR tech to field ops and Telehealth, community tools aren’t just for social apps. Real engagement uplift: Apps typically see up to 50% more engagement, especially if they already have an external audience. Trends and tools: Live-streaming with chat, audio rooms for gaming, and embedded features like schedulers or activity maps drive stickiness and insight. Focused, niche social: Users now prefer smaller, purpose-driven communities over noisy platforms. Stream’s future: Expanding video offerings, deeper moderation tools, and positioning as a one-stop platform for in-app communication. Links and Resources: Kenzie Wilson on LinkedIn Stream's website Strava app Business Of Apps - connecting the app industry Quotes from Kenzie Wilson “If you already have kind of that cult following of your app, and then you give them a place where they can actually talk to each other, your engagement is going to go through the roof.” “Every app is a community. You have users, you can have a community—and it’s actually pretty simple to do.” Host Business Of Apps - connecting the app industry since 2012

In today’s crowded, AI-fueled landscape, it’s not enough to just have messaging — it has to stand out. In this episode, I’m joined by Jason from Customer.io to unpack what makes great mobile messaging work: from building frameworks rooted in value and differentiation, to using first-party data to deliver the right message at the right moment. We’ll talk strategy, execution, and the tools that help brands stay personal, timely, and unmistakably themselves — even at scale. Today’s topics include: Jason Lyman''s bio What is Customer.io How brands can can use AI but stay authentic  The role of first-party data in making messaging more timely and relevant Timing and channels for effective mobile messaging Common mistaken made at personalizing messaging at scale Balancing automation with authenticity Links and Resources: Jason Lyman on LinkedIn Customer.io website Business Of Apps - connecting the app industry Quotes from Jason Lyman "Yeah, this is an interesting paradox that we've kind of created for ourselves. We have all these incredible tools like AI recommendations, powerful automation, sophisticated targeting, but everybody's using that playbook. And I think the result is customers are getting bombarded with messages that sounds very, very similar. so standing out needs to be less about being louder or frequent, and it needs to be focused around being more authentic." "So,  first party data is absolutely the future, especially with privacy regulations that are tidying up across the globe. So here's what I see happening. think gold marketers are sitting on these gold mines of customer data, but they're not using it effectively. know, a lot of people are, are thinking about segmentation in a very traditional way." Host Business Of Apps - connecting the app industry since 2012

All right, I think all of you would agree—regardless of your role or area of expertise in this industry—that learning from the mistakes of others saves you time, money, and, most importantly, nerve cells. Because let’s be honest, trial and error is great… until it’s your budget on the line. So, today we have Reed on the show to help us skip some of those growing pains. He’s here to share what’s working, what’s not, and some fresh, thought-provoking approaches to both app marketing and development. Whether you’re scaling a product or just getting started, I think you’ll walk away with a few insights worth stealing—or at least borrowing. After founding the Business Strategy team at Branch six years ago, former strategy consultant Reed Kuhn has worked closely with hundreds of customers across verticals. Along the way, he’s picked up some sharp lessons—not just about best practices, but more importantly, about what not to do. In this episode, we’ll explore guiding objectives for app product owners and marketers, the greatest hits of killer use cases, mobile growth fails, and some simple ideas to make more from what you already have. Plus, we’ll look ahead with some bold predictions about how all of us will interact with apps in the AI-powered future. Today’s topics include: Reed Kuhn's bio What is Branch.io A guiding principle for what brings value to app users Common mistakes A quick win in app development Effective strategies New strategies on the Reed's radar What's coming up - in the near future and far out Links and Resources: Reed Kuhn on LinkedIn Get in touch with the Branch.io team Branch.io website Business Of Apps - connecting the app industry Quotes from Reed Kuhn: "Over the years, so many of our customers fall into two big buckets. And this is, I think, the simplest framework that I have for differentiating between apps and what they're trying to achieve in terms of value. And that is you have commerce apps, which are the most obvious ones. This is your retailers, fashion, even quick serve restaurants, fast food chains, Starbucks, and also the big box retailers, the best buys of the world, even department stores like Nordstrom. Those are commerce apps. Users primarily are going in there to shop. And hopefully, they actually buy something. And we do know that conversion rates are much higher in apps than on mobile web or even desktop. So those are easy to wrap your head around. The app exists to make it much easier for the user to shop and, in some cases, actually get support. If you want to manage a delivery or send something back, you can do that in the app rather than having to call someone up. On the flip side, you have apps that don't really sell you anything, but they still serve a very important purpose to the user. So I call those companion apps and they're more diverse than commerce apps. So whereas commerce apps are very conversion focused, companion apps are much more feature focused. It's, I able to access information? So almost everybody is going to have their credit card or bank app on their phone, or at least they should be at this point. If they don't want to go there in person." Host Business Of Apps - connecting the app industry since 2012