In its Android app, Spotify now can use its in-payment system. Google said that it would allow Spotify technology SA to use its payment system as part of a new pilot. The aim is to resolve high fees and anticompetitive behaviour. The new pilot will allow participant developers to offer additional billing options in their app system.
Google announcement a second payment system
Tech giant google said in a blog post, ‘’ this pilot will help us to increase our understanding of whether and how user choice billing works for users in different countries and developers of different sizes and categories. Google added that the new pilot would allow developers to introduce a second payment system alongside its own.’’ Also, Spotify said that the trial with Google was part of a ‘’multi-year agreement, without explanation.
Spotify payment systems struggle
The developers on Spotify have been complaining about not having other payment options besides the official one in the play store and Apple Inc’s App Store. Meanwhile, Apple and Google collect almost 30% of the payment as a fee which is too high for developers. Also, Google did not give any details of the fee it will collect in the new pilot.
Google said about the pilot, ‘’ it is designed to help us explore ways to offer this choice to users while maintaining our ability to invest in the ecosystem. ‘’
As google keep experimenting with different ways to lower app store fees. There is much pressure from the public and developers as well. Android system depends on developers, and Google wanted to expand its relationship with the developer community.
Besides Google, Apple also said in late 2020 that it would take a smaller cut from App store sales and raised the fee from 15% to 30% for businesses earning less than $1 million through their apps.
