As Google announces the expansion of its User Choice Billing, Spotify started rolling out the payment method for selected users. Even if Google will be having a cut in payments, Spotify states that this will be the start for a better platform fairness and expanded payment options.
(Photo : Joe Scarnici/Getty Images for Spotify)
LOS ANGELES, CA - MARCH 28: Signage seen as Spotify presents The Billie Eilish Experience at The Stalls at Skylight Row on March 28, 2019 in Los Angeles, California.
Spotify Supports User Choice Billing
Spotify rolled out Google's User Choice Billing in selected markets, prior to the announcement of its pilot. Through this payment method, Android app developers can now use other payment systems besides Google Play's services. As of the moment, the implementation is currently available in the United States, Brazil, and South Africa.
Users will now see a new interface when paying for their subscription. Two options will be appearing on the screens, Google Play billing will be transitioning its users to the traditional payment method and Spotify billing will continue within the application's own process of checkout.
As Spotify stated in their newsroom, "Going forward, Android users will soon be able to choose how to pay for their Spotify subscription in the way that best suits them. Google has taken a bold step to help level the playing field, but this is just the beginning."
The plans of both companies were originally publicized last March. The statement added that the company has been always believing that fair and open platforms make a better experience for its customers and empower the developers to improve at the same time.
Meanwhile, Google stated that they have been working with Spotify to improve and develop the experiences of its customers, based on a report by TechCrunch. In this case, it will now be convenient for them to pay on whatever method and option they want. But Google clarified that this is not the final decision as it is still in the early days of the pilot testing and this may change over time.
Aside from Spotify, Bumble will also be joining Google to test the User Choice Billing, as the dating application rolls out payment options for users in selected countries in the future.
Commission Percentages
According to The Verge, Google will be getting a portion of the payments even if Spotify will be processing the whole payment. A 4% cut will be reduced for the services when a consumer chooses to opt for an alternative billing system. However, Google will not be removing the usual method. Spotify did not comment regarding this matter as it remains confidential within the two companies' deal.
Google has also been receiving a lot of criticism regarding its billing systems as it was described as unfair regarding its commission percentages. As per the report, lawmakers and regulators have been pressuring Google (and Apple) to open up their applications' ecosystems for transparency. But the company hopes that the newly launched User Choice Billing will give assurance to those who are concerned about the situation.
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Written by Inno Flores
