Spotify may offer its own payment option – what does this mean for you?


Spotify may offer its own payment option – what does this mean for you?

Google has started an experiment that allows Spotify users on an Android device to choose how they pay for their Premium subscription. All payments are currently made via Google’s Play Store, but later this year it will be possible to choose a payment option that Spotify offers itself.

It is not yet clear exactly how that will work, but if the experiment is a success, more apps could follow.

By choosing a payment method yourself, you are roughly faced with two options: do you contribute to the further development of the Play Store infrastructure or do you want the money to go to the developer of an app?

Cheaper option?

It remains to be seen whether you actually notice anything from the choice you make. Epic Games, for example, tried on its own to run payment options for the game Fortnite outside of the Apple App Store and the Google Play Store. The game publisher attracted customers by offering lower prices for in-game items, making it less attractive to make purchases through the Apple or Google platform. Of course, the two companies are not happy with that, which is why there is now a lawsuit against Epic.

It is therefore not obvious that a Spotify subscription will soon be cheaper if you pay for your subscription outside the option of Google. After all, Google started the experiment itself.

Fortnite
Epic games has been arguing for payment options outside of Apple and Google for some time now.

Ease

If you pay your Premium subscription directly to Spotify, you know that a larger part of the amount goes to the streaming service. A good development, you might say.

The payment option from Google offers a lot of convenience. All your subscription data and payment information are stored in one central place. You can see all your subscriptions in one overview via your Google account and you can easily switch them on or off.

If your payment details change, for example because you have a new credit card, you only have to inform Google and all your subscriptions will then continue. You don’t have to update your data in each app individually. On the other hand, you do give Google full insight into sensitive financial data, but whether that will change if you let all payments go through the relevant apps remains to be seen.

freedom of choice

Spotify will make the payment option available in all markets where it operates. It remains to be seen whether Apple will also start a similar experiment in the long term, but hard work is being done behind the scenes to give users more freedom of choice.

The European Commission, the European Parliament and EU member states are currently working on legislation to limit the market power of tech giants, including stricter rules for the app store.

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