Google allows Spotify on the Play App Store and bumblebe Bill US users directly for subscriptions on Android apps, Google Announced Thursday.
Google Play and Apple’s App Store for iPhone typically account for between 15% and 30% of in-app digital sales through their billing platforms.
By allowing businesses to charge users’ credit cards directly within their apps, services like Spotify can cut these fees. Google says in a supporting document that apps that bill the user directly require him to pay Google a portion of the app’s sales. Additionally, Spotify will continue to accept payments for subscriptions through Google Play Billing. “If the consumer chooses a different billing system, the service fee paid by the developer will be reduced by 4%,” the supporting document states.
Spotify has been publicly advocating for platform fairness and expanded payment options for years. We believe that fair and open platforms enable better, frictionless consumer experiences that also empower developers to imagine, innovate, and thrive.
Google is allow Spotify and Bumble to accept payments bypassing the Play Store
Spotify is rolling out an initial test implementation of user choice billing to users in select countries starting this week. Google today also announced a partnership with Bumble, with Bumble adding support in the coming months.
User Choice Billing from Google is an option in 35 countries, including the United States, much of Europe, Australia, Japan, and more, and it is a pilot program that other developers are also able to join.
With User Choice Billing, Google has distinguished the Play Store from the App Store, as Apple does not let apps use alternative billing at this time. There are two exceptions, however, including South Korea and the Netherlands. Regulators in these countries have forced Apple to allow some apps to use third-party payment providers.
In October, Spotify skirmished with Apple over one of its rules about whether it could create a button inside its apps to email customers with a purchase link that bypasses Apple’s App Store cut, according to the New York Times.
Spotify stock rose just under 10% on Thursday. Bumble stock was up over 10%. Google gained over 7% as well on a strong day for the markets after the lower-than-expected inflation report.