Can Be Cheaper, Google Allows Third-Party Payments For Spotify App On Android

Google will allow developers to introduce a second payment system. (photo: doc. pixabay)

JAKARTA - Google Alphabet Inc., on Wednesday, March 23, announced that it would allow Spotify Technology SA to use its own payment system in its Android app. This is part of a new pilot aimed at countering concerns from app makers about high costs and alleged anti-competitiveness.

Users who have previously downloaded Spotify from the Google Play Store will be given the option of paying with the Spotify payment system or with Google Play Billing. This applies in several countries in the coming months.

The trial will allow a small number of participating developers. Starting with Spotify, to offer additional billing options in addition to the Google Play billing system in their app.

"This pilot will help us improve our understanding of whether and how user-preferred billing works for users in different countries and for developers of different sizes and categories," Google said in a blog post.

Previously, according to a Reuters report, under a new competition law in South Korea last year, Google also said it would allow developers to introduce a second payment system in addition to its own in the country.

Spotify says its trial with Google is part of a "multi-year agreement." However, the two sides did not explain further what the intent of the agreement was.

Developers of apps like Spotify, which sells digital goods, have been complaining for years about having to use Apple Inc's official Play Store and App Store payment systems.

Google and Apple collect up to 30% of each payment as a fee, which the developers say is too high. Both have now lowered costs in many circumstances and say they are needed to fund a safe and secure mobile ecosystem.

While Google did not specify the fees it will collect in this new trial with Spotify.

The company stepped up enforcement of Google Play Billing requirements, and said non-compliant apps could be blocked from publishing updates starting Friday.