The popular streaming music service will be able to bill users directly in the Play version of the service, without going through the billing system.
" User Choice Billing" is a feature that allows users of the app to make purchases using their preferred payment method. User Choice Billing is an alternative billing option that has a reduced fee.
The payments service will be able to collect payments directly from users, and it will be cheaper than usual. When User Choice Billing is adopted by developers, they will need to give a cut of their app sales and purchases, but at a lower rate. In-app purchases make up between 15 and 30 percent of the total revenue collected by the company.
In a blog post, Spotify said that Google has taken a "bold step to help level the playing field," and that "fair and open platforms" bring "frictionless consumer experiences."
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.
The initial test of user choice billing will be rolled out this week. The partnership with Bumble will be added in the coming months.
In 35 countries, including the United States, much of Europe, Australia, Japan, and more, User Choice Billing is an option that other developers can join.
The Play Store is different from the App Store because Apple does not allow alternative billing at the moment. South Korea and the Netherland are exceptions. Some apps have been forced to use third-party payment providers by regulators.
Apple collects a 27 percent commission in the Netherlands and a 26 percent commission in South Korea. The User Choice Billing System is similar to what has been done by the two reduced commission systems. It is possible that Apple will fold and expand the Dutch and South Korea processes to other countries, but Apple is still fighting for in-app purchase to remain the only payment method in the App Store.