Google and Apple’s app stores have historically taken a 30% cut on all transactions as a means to recuperate hosting and other services. Large developers have grown increasingly weary of this and turned to other distribution methods. Tinder is the latest example, with the dating service no longer using Google Play’s in-app payments system.
As reported by Bloomberg, Tinder has launched a new default payment process under the guise of “convenience, control and choice.” Users of the online dating network are now required to enter payment details directly to make in-app purchases.
The move is similar to one made by popular video game developer Epic Games, which last year released the Android version of battle royale hit Fortnite via its own downloadable launcher to avoid the 30 percent cut. Notably, Tinder is Match Group’s most profitable entity, and between its subscription services and other in-app purchase options like paying for the ability to know when someone has read your message, the software is often one of the highest grossing free apps on both iOS and Android.
“At Match Group, we constantly test new updates and features to offer convenience, control and choice to our users,” says Match Group spokesperson Justine Sacco in a statement given to Bloomberg. “We will always try to provide options that benefit their experience and offering payment options is one example of this.” After inputting your credit card into Tinder’s system, the app supposedly defaults to that payment method for any in-app purchase in the future, allowing Tinder to bypass the cut indefinitely. Google was not immediately available for comment.
Epic and Match may be the only two high-profile companies to thus far openly bypass the Play Store while still trying to cater to Android users. Yet prominent subscription services like Netflix and Spotify have for years expressed distaste for the 70-30 model of modern app stores, which was put in place by Apple back in 2008 and borrowed just a few months later by Google for its Play Store.
Many companies treat the 30 percent cut as the cost of doing business, especially on iOS where you get Apple’s quality control and firm grip on its ecosystem, although some begrudgingly refer to the fee as the “Apple tax.” Even though Epic Games did bypass the Google Play store, it decided to release Fortnite on iOS through the App Store and take the hit, for instance. Android, however, is more open and therefore more flexible with how developers want to make money and reach users more directly. That’s opened the door for Epic and now Match Group to experiment.
According to research analyst Ben Schachter at Macquarie, Tinder’s move will not have a massive impact on Google’s bottom line. However, this could signal a trend where other companies follow suit. Larger developers might be inclined, while Play Billing might be more economical for smaller ones.
