Google allows Spotify to have its own payment method on Android-Information Technology

Google’s changes to Spotify’s payment method will be experimental and limited, but it’s still a big step up from Apple’s approach.

On March 23, Google and Spotify announced a future version of the Spotify app on Android will allow registered users to pay directly to Spotify, in addition to the current Google Play payment option.

This move is the most significant concession to date by an app store like Google Play. In recent times, third-party payment methods within the application have become a central issue for regulators in many countries around the world.

Previously, on both Google Play and App Store of Apple, application developers cannot receive credit card information directly from customers for payment purposes. Instead, the app seller must make the payment through Google’s system, at a fee of 15-30% of the revenue from the application.

However, Google’s change to Spotify is only a single “experiment”; Google hasn’t released a general rollout schedule or specific countries that will test this change. Google’s announcement shows that only “a handful” of app developers are allowed to have their own payment solution.

Google also confirmed that Spotify still has to pay a fee to Google for payments that Spotify handles itself. The group also said it will continue to follow a policy of requiring a fee equivalent to 11% of total app revenue for payments not via Google Play, similar to the model applied in Korea.

Google’s decision will put more pressure on Apple, which maintains its opposition to third-party payments on the App Store for apps and services or in-app products. The lawsuit against Epic Games and the multi-million-euro fine imposed by the Dutch authorities have not changed this approach of Apple.

Spotify is one of the major companies that openly criticize Apple and its App Store commission policy. The company filed a complaint with the European Union; A Spotify employee also spoke before the US Congress that Apple’s policy is unfair because Apple does not charge a similar fee for the Apple Music service.