26 June 2020
Tinder has become the latest high-profile app to bypass the industry-standard revenue cut earned by app store owners. It has started taking payments for premium services directly instead of the Google Play Store. This move is aimed at avoiding paying the revenue cut to Google which can be as high as 30%.
It means that from now own, Tinder will be asking and storing your credit card information on its own servers. The report mentions that it does offer Buy with Google Play instead option but once you choose to pay directly to Tinder, there is no way of going back to the Google way. This new payment method is currently available only on Android devices with no details regarding iOS.
Justine Sacco, Match's spokeswoman said,
“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 Inc. is the owner of Tinder and various other dating apps like OkCupid, Match.com, and Plenty of Fish. Its decision to rebel against Google could have a significant effect on the latter. Tinder is one of those apps which regularly features among top 10 and highest-grossing apps on Android as well as iOS app stores. It brings in huge revenue resulting in millions of dollars of revenue cut which will not be going into Google's pockets anymore.
In the past, we have seen apps like Spotify and Netflix sharing their unhappiness about paying 30% cut to Apple and Google. Spotify even filed a lawsuit against Apple by calling it a monopolist. Netflix also stopped using Apple's methods and started offering its own option to iOS users for subscribing to the membership. Similarly, Epic Games refrained from providing Fortnite on Android through Play Store and launched its own downloader to avoid paying the cut. It went one step further by releasing the Epic Games Store for PC games to compete with Steam.