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Spotify planning to launch in-app payment system for iOS users

Big changes are coming to Spotify once the European Union’s Digital Markets Act kicks in on March 7. The audio streaming service has announced that EU residents will at last have the option to buy a Premium subscription or switch from an Individual to a Duo or Family plan directly within the app.

Since 2016, Spotify has been saying no to letting users pay for a subscription using Apple’s in-app payment system. They’ve been quite outspoken about how Apple takes a hefty 30 percent cut from app developers. In fact, last year, they took it a step further and stopped accepting Apple payments altogether. Previously, they allowed iOS users who had a subscription before 2016 to continue using Apple’s in-app system for payments.

With Spotify introducing its own in-app payments, users can now conveniently buy audiobooks while checking out titles within the app. The cool part? Customers will only be charged the exact amounts for subscriptions and purchases, and they won’t have to fork out extra to cover Apple’s commission.

Previously, users who paid through Apple’s in-app system had to shell out an extra $3 on top of Spotify’s subscription fees, but the EU’s DMA puts the brakes on that practice.

On top of rolling out its own in-app payment system, Spotify will now have the freedom to display prices within the app. Currently, it just puts a note in place of the price, stating that users can’t make purchases from within the application. However, once the DMA is in play, Spotify will be able to showcase the prices of its products and even share info on deals and promotions directly with iOS users within the app.

“It should be this easy for every single Spotify customer everywhere,” the company said in its announcement. “But if you live outside certain markets, you will continue to encounter frustrating roadblocks because of Apple’s ridiculous rules. That’s why developers everywhere are continuing to ask other governments to pass their own laws like the DMA.”

Rohan Sharma

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