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Spotify (SPOT) Stock Gains After Google (GOOGL) Allows Third-Party Billing Option -Breaking

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© Reuters. Stock gains for Spotify (SPOT), after Google (GOOGL), allows third-party billing

Google (NASDAQ 🙂 announced Wednesday that Spotify (SPOT), a service of Spotify (NYSE 🙂 allows users to pay subscription fees through their Spotify (NYSE 🙂 apps.

This announcement is a major honor for Spotify, as most mobile apps stores don’t allow third-party billing within their apps.

On the news, Spotify’s stock price soared by 3.5%

Two of the largest mobile apps stores, Apples App Store and Google Play, did not permit developers to charge customers directly for their services. Instead, they required them to request credit cards from customers through Google’s system. This charges anywhere between 15% to 30%.

This could change, however. Google stated that Spotify can provide its billing but didn’t give any information about the availability of this feature to other apps. It will only allow a few developers to create their billing, the tech giant stated.

The pilot allows a few participating developers to provide an additional billing option to Google Plays. It is intended to allow us to explore options for users while still allowing us to invest in this ecosystem. Google explained in a blog post.

Google will charge Spotify an additional fee to process the payment. However, it stated that it would expand its policy used in South Korea. There, it charged a 11% fee for subscribing purchases through third-party billing systems, as required by South Korean legislation.

By Senad Karaahmetovic

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