Off-platform billing for a connector app (standalone SaaS, zero merchants acquired via Shopify) exemption vs. split billing?

We run a standalone SaaS - Roominate (roominate.co), a product-imagery tool for interior brands, used entirely on our own platform. A large number of our customers have no Shopify
store. Our Shopify app is purely a connector: it imports a merchant’s catalogue, publishes images we generate back to their products, and reports attribution. No customer is ever acquired
through the Shopify app — they all sign up and get billed on our platform first.

We were rejected under 1.2.1 (off-platform billing — we charge via Stripe). We’re not moving our core product off Stripe, so I’m trying to understand the two possible routes and would welcome input from anyone who’s been through this or form a Shopify Rep who has some info on the subject:

  1. The exemption route. What are the actual rules for an off-platform-billing exemption for a connector app like this? The requirement says off-platform billing is disallowed “unless you’ve been notified otherwise by Shopify.” In practice, who grants it, what criteria, and has anyone gotten one for a digital SaaS connector (not physical-goods/logistics)? Or is it effectively only granted to ShipStation-style cases?

  2. The split-billing route. Is it compliant to bill only the connector functionality (publish-to-store + metrics) through the Shopify Billing API as its own recurring charge, while the core
    SaaS subscription (the product used off-Shopify) stays on Stripe? i.e. the app’s charges all run through Shopify Billing (where truthfully it’s a free add-on for users, we were planning gating it to higher tier subs - but can happily make it available to all), and Stripe is only for the separate, independently-used product similar to how ShipStation/Klaviyo merchants pay the external service directly. Does that satisfy §1.2.1, and has anyone shipped this structure?

Trying to work out which route is realistic before investing in the build. Any first-hand experience appreciated.

thanks.

mat

Hey @Mat_Dobson, we have had a similar question here: Clarification on Billing Requirements — App Using Stripe for Subscription & One-Time Charges

TLDR though is you will need to have a path for merchants to install your app through the Shopify App store and bill through Shopify as well. You do not need to change anything for your existing customers.