Spotify stops accepting payments that were set up through Apple's App Store
A very small group of Spotify's subscribers will be moved to the Free tier.Spotify is notifying users who’ve subscribed to its Premium service through Apple’s in-app purchase system that it will no longer be supporting it as a payment method. As a refresher, Spotify
users to subscribe through Apple’s in-app purchase since 2016. However, those who had already subscribed via that method years ago could keep paying Spotify that way until now., the company is emailing affected subscribers about the upcoming change. The email reads, “We’re contacting you because when you joined Spotify Premium you used Apple’s billing service to subscribe. Unfortunately, we no longer accept that billing method as a form of payment.
But that’s probably for the best. Due to Apple taking 30 percent of in-app purchases, Spotify users who were subscribed through in-app purchases were being charged an extra $3 per month compared to subscribing through Spotify directly. That’s despite the fact that Apple now reduces its commission rate to 15 percent on subscriptions after the first year. Apple said in a regulatory filing from 2019 that it collected that 15 percent fee.
Both Apple and Google charge a “tax” on their respective app stores, regardless if a user is purchasing apps or subscribing through in-app purchase. Early last year,
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