Categories: NewsTech

To avoid Google’s Tax, Tinder is bypassing Play Store payments

First, Spotify and Netflix. Then, it was Epic Games with their battle royale cult favourite, Fortnite. And now, Tinder is the latest high profile app to voice out discontent at the tax that is levied on app makers by Google and Apple for payments made through the Play Store and App Store respectively.

The dating app has launched a new payment process that bypasses the Google Play Store for payments on Android devices—instead, payments made for premium services can now be made with credit cards directly in the app. This marks a change from the standard payment system, where recurring subscription payments for Tinder would be be run through the Play Store, netting Google a percentage of the revenue.

“At Match Group, we constantly test new updates and features to offer convenience, control and choice to our users. We will always try to provide options that benefit their experience and offering payment options is one example of this.”

– Match Group spokesperson Justine Sacco.

Tinder, which is owned by Match Group (they also own dating services OkCupid and Match.com), earned a record US$275 million last year alone. It’s basically turned into a cultural phenomenon. But this means that Google stands to lose a significant amount of revenue, with the tax going up to around 30% for most apps.

Not very popular

The 70-30 profit share system that was first implemented by Apple in 2008 and followed by Google soon after, is a system that has drawn criticism from major players in the market. Spotify and Netflix have both been opened in their disdain for the tax, while Fortnite isn’t even available on the Google Play Store.

The tax is begrudgingly accepted by most companies, particularly iOS where you get Apple’s quality control and ecosystem benefits. For example, Epic Games did bypass the Google Play store, but still released Fortnite on iOS through the App Store. Android, on the other hand, is more open and therefore more flexible with regards to developer options.

As for now, it will certainly be interesting to see how other popular apps react to Tinder’s move. Google will stand to lose a whole lot more than a cut of Tinder’s revenue if other apps follow suit, for sure.

[ SOURCE ]

Related reading

Recent Posts

DC Handal deploys 240kW DC Charger at Symphony Suites Hotel Ipoh

DC Handal has deployed a new high-powered DC charger in Ipoh and it is currently…

3 hours ago

Infinix opens 1 Utama brand store this Sunday: Here are the opening day promos

Infinix is expanding its physical retail footprint in Malaysia with a new brand store at…

6 hours ago

CMF Clip Pro: Nothing’s budget open-wearable earbuds with Smart Dial and Hi-Res audio

Following earlier teasers, CMF by Nothing has officially launched the CMF Clip Pro, marking the…

8 hours ago

BMW iX3 50 xDrive now in Malaysia: The first Neue Klasse EV, priced at under RM400k

The 2nd generation BMW iX3 is now officially in Malaysia, marking the beginning of the…

9 hours ago

MBSB Bank Visa Debit Card-i now supports Samsung Wallet and Google Pay

MBSB Bank customers can now add their Visa Debit Card-i to Samsung Wallet and Google Pay, allowing them…

22 hours ago

Alliance Bank announces Apple Pay support: Only for Visa credit cards, offers RM30 launch cashback

Almost 4 years after the feature arrived in Malaysia, Apple Pay is now finally available…

1 day ago

This website uses cookies.