Google will give Android users choice on what payment system to use, starting with Spotify

Apps like Spotify, Netflix, and others on Android have been taking payments from users directly, thus making it impossible for Google to collect a fee on such purchases. 97% of apps were already using Google Play for payments, but not all of them. Because of that, a couple of years ago, Google announced a new requirement that would force the remaining 3% of apps to use Google's own Play Billing system on Android. However, 9to5Google reports that the tech giant might have just changed its mind.

Google will give "User Choice Billing" on Android phones, starting with Spotify

Back in 2020, Google announced a new requirement for all apps in the Play Store to use its billing system, Play Billing. However, this was delayed and now Google seems to have a change in mind. It seems the tech giant will allow apps to use their own payment system, as long as they offer the Play Store Billion as an option alongside it. This initiative is dubbed "User Choice Billing", and Spotify has been selected to be the first partner in it.

A small number of developers (for now) will get the option to offer an additional billing option next to Google Play's billing systems. Pretty much, this change aims at giving users choice as to how they want to pay, while at the same time, still allowing Google to maintain its ability to invest in the ecosystem. Using Google Play's billing system, of course, leads to Google taking a commission on purchases.

The tech giant has stated that this commission pretty much helps it support the Play Store, its security and infrastructure, and Android in general.

Now, onto the project. Spotify will, as we already mentioned, be the first partner to offer User Choice Billing to Android users. It needs some time to build the functionality though, so this won't happen overnight. In the future, Android users on Spotify will see Google Play Billing as an in-app option, alongside Spotify's payment system.

A part of the agreement is that Spotify remains able to communicate with users about its Premium tier, as well as promote its discounts on it and other promotions. Additionally, the possibility to switch from a free to a premium Spotify user from the app directly will also remain.

We expect the first iteration of the User Choice Billing in Spotify to be released later this year. However, there is no concrete date to it as of now, so you may have to wait a little bit for it.

Luckily, this project will help both sides, it seems. Users will still be able to pay for an app using Play's billing system, which will help Google maintain the security and infrastructure of Google Play. On the other hand, Google also mentions that it is extremely important for app developers to ensure the security and privacy of people who chose to use their payment system instead of Play billing.

Google Play Billing, when announced, was met with criticism

Google announced the requirement for Play Billing in 2020, and immediately it was followed by criticism and allegations of violating antitrust laws. To be specific, 36 US states and Washington, D.C. actually filed a lawsuit against it.

This Play Billing was related to apps such as Netflix and Spotify, which are around 3% of apps on Android. These apps have used their own payment systems where you give your credit card details directly to them. However, this means Google was unable to take any cut from such purchases, and thus, Google decided to mandate Google Play In-App Billing for any app downloaded from the Play Store.

This change was delayed to last month. However now, it seems Google is open to giving users more choice, and this User Choice Billing is doing just that. This way, it seems more like a win-win situation rather than an exploitation of a dominant position. But we will see how this unveils in the future and what other partners to the User Choice Billing will Google find.