In 2019, before the release of iOS14 with all following attribution issues and limitations, this way of selling in-app access was done mainly with 1 goal - to increase user's LTV. And there are 2 reasons for this:
1. On the Web, people are more willing to buy a subscription at a higher price than in an app. In an app, if you set the subscription price at $19.99 instead of $9.99 per month, most likely your CR (conversion rate) will drop by more than twice and final ROAS will drop. Meanwhile on a Web Paywall you can nicely customize the sale process by adding, for example, price breakdown by day or an additional discount when user intends to close the website. Also upsales and upgrades can add some more value $ to an LTV.
I've worked with products who had such a different pricing: $14.99 per week, $39.99 per month, $79.2 per quarter, lifetime access for $149.99 pr even combination of 3 pricing options for a different duration. Even if paid acquisition works with predicted profit at the moment, you still need to test different pricing options and UI to improve your ROI. Product manager's goal is to kill two birds with one stone: 1) to achieve the highest possible ROI of advertising campaigns (combination of conversion and LTV, higher revenue from click) and to minimize the risk of Paypal/Stripe account blocking/freezing.
I faced the blocking of Paypal accounts twice with different projects and in both cases huge amount of money were frozen ($450k and $1.1M). In both cases Paypal returned the money (thank to our lawyers), BUT all rebills (repeated payments) on subscriptions were lost, it was hundreds of thousands of dollars... The consequence of this cases for UA managers was a decreased target payback period so the UA volume dropped significantly.
2. The second reason for LTV growth is a better subscriptions renewal comparing to an iOS app. The reason for this is that in Apple devices canceling all in-app subscriptions can be done in the Apple ID settings and every Apple user knows how to deal with that.
What is the situation with unsubscribing on Web?
Here everything is very individual as different companies have different policies on refunds based on financial and reputational risks. I described the financial risks above (blocking payments), and reputation can be damaged by reviews to the application or advertising in the format of "SKAM".
Most often a user can unsubscribe only by writing to Support via email, where responses usually take dozens of hours. Also there is an option to appeal the transaction in Paypal or with bank customer support, which is already "on the counter" of allowed appeals. If the percentage of problematic transactions is higher than 2-3% of the total number (the exact figures vary from one payment system to another and from one client to another), problems may start.
Companies that are just starting their way in accepting Web payments (average turnover is below $100k/month during the last six months) should be extra careful. Because of quick disputes or refunds increase your Paypal/Stripe account may be at risk.
Stripe is a bit more loyal in this aspect and blocks clients' wallets less often, but with Paypal payment option there will be definitely an increase in conversion rate to trial and subscription from 25% to 50%. An ideal payment setup for US and Tier1 countries should include:
1) Payment by card
2) Payment via Paypal
3) Payment via Apple Pay/Google Pay.