Spotify To Remove Apple App Store Payment Method for Subscribers

Long-time iOS device users may want to switch payment methods for their Spotify subscriptions.

Spotify recently announced that existing users on iOS devices would no longer pay for its audio streaming services through Apple's App Store soon.

Spotify has previously worked to separate users' payment for its services from the mobile companies' billing system to help users save money and avoid paying percentages to them.

Spotify iOS Billing System Separation

Spotify could soon separate its billing system from Apple's if Variety's report is to be believed. According to the publication, the audio streaming company recently started emailing users using Apple's billing system to pay for their subscription - an act a company spokesperson confirmed.

The email stated that Spotify no longer accepts Apple's billing system/method as a form of payment for their subscription to its services. As such, those that receive such an email will automatically have their accounts switched to Spotify's Free, ad-supported service from their next billing cycle, the spokesperson revealed. Users will then have to choose between keeping their account supported by ads or upgrading to a Premium one by logging into their account at Spotify's official website.

The spokesperson added that the company's decision to no longer accept Apple's billing system was to help ensure it can continue to provide a "consistent best-in-class subscription experience for all [its] users."

Tech Crunch reported that Spotify previously disabled the option to subscribe through in-app purchases on iPhones since 2016, which may have marked the beginning of the company and Apple's disagreement on the latter's App Store fees. Interestingly, Apple is currently presenting its case to European regulators to dismiss Spotify's antitrust charges against it for employing anticompetitive tactics with its app store policies.

Spotify also had a similar argument with Google regarding fees for in-app purchases made through the Play Store. However, instead of Spotify suing Google, Google agreed to let Spotify experiment with third-party billing options in several countries.

As a result, Spotify became the first partner of its alternative billing system pilot test, which is expected to help "explore offering [other] choices to users." Thanks to his test, eligible app developers could see their service fees of 15% to 30% reduced by 4% when users select a new third-party billing option.

Does Spotify's Move Affect Many Customers?

While Spotify said in its Q1 2023 earnings that it had more than 500 million monthly active users and over 210 million premium subscribers at that period, its decision to no longer accept payments through Apple's billing system won't affect iOS users subscribed to its services.

Apple said in a 2019 regulatory meeting that it collected a 15% fee on subscription payments for just 680,000 of Spotify's premium subscribers at the time.

Whether Spotify will see dollar signs their way after making such a decision is still up for debate. However, doing so allows iOS users to save 15% of their Spotify subscription fee for them use on other things.