Spotify Restricts Apple In-App Payments for Subscribers
Spotify Announces Discontinuation of Premium Subscriber Payments through Apple’s App Store.
According to a report from Variety on Wednesday (July 5), Spotify has decided to cease the option for new subscribers to make payments through the app store, a practice that has not been available for the past seven years. Furthermore, existing subscribers were only given a two-year timeframe to opt for Apple as their payment method.
The decision has impacted those specific customers utilizing Apple’s in-app purchases for payment. As reported by Variety, these customers were recently informed that they would no longer have the option to pay through Apple’s billing service.
In an email sent to the affected customers, Spotify stated, “We’re reaching out to you because when you signed up for Spotify Premium, you utilized Apple’s billing service for the subscription. Regrettably, we can no longer accept this billing method as a valid form of payment,” as stated by the news outlet.
A spokesperson from Spotify confirmed the alteration through a statement provided to PYMNTS.
The statement affirms, “We have recently commenced notifying a limited number of users that the legacy payment method linked to their Premium account is being phased out.”
Users notified via email will be automatically transitioned to a Free account starting from their upcoming billing cycle. However, they will retain the option to upgrade to a Premium account by logging into their account at Spotify.com. These measures ensure a consistently excellent subscription experience for all users.
Spotify has consistently voiced its concerns over the practices of Apple and Google’s app stores, and it filed a complaint against Apple in Europe in 2019. The company agreed with Google last year, allowing Android users to choose between Google Play Billing or Spotify’s payment system for subscribing to the service.
Users who have installed Spotify from the Google Play store will be provided various payment options. The two alternatives will be conveniently displayed side by side within the app.
In an interview with PYMNTS earlier this year, Sandra Alzetta, Spotify’s Vice President, Global Head of Commerce and Customer Service, revealed an ongoing partnership between Spotify and Google regarding a pilot initiative called User Choice Billing (UCB).
According to the news released, Alzetta explained, “Our collaboration with Google ensures that users can choose their preferred billing options.”
They are excited to announce that they have successfully implemented the first-ever in-app payment system in conjunction with Google. This innovation allows users to exercise their right to select their preferred payment method.
The collaborative efforts between the two companies commenced in November, and the UCB pilot program is currently available in 140 markets. The primary objective is to provide users with a wide range of payment choices, emphasizing the importance of user autonomy and flexibility in making payments.
Furthermore, Spotify has joined forces with India’s UPI national digital payments platform, recognized as a critical driver of the payment revolution in the country.
Our initial integration with UPI in 2019 enabled single payments, but we recently introduced UPI auto pay for recurring payments,” mentioned Alzetta. The reception has been exceptional, highlighting the importance of offering users the freedom to choose their preferred payment method.
