Spotify on iOS to Bring Back In-App Purchases, Beta Code Suggests

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Author: Tim Hardwick

Spotify appears to be bringing in-app payments back to its iOS app, based on code strings unearthed in the latest beta.

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MacRumors contributor Aaron Perris discovered references to an in-app payment system, including an IAP checkout screen and purchase retry panels for failed purchases.

It's not clear what the IAP references relate to, but the fact that they are included is curious in itself. Spotify has not allowed customers to sign up for a Spotify Premium subscription through the ‌App Store‌ for the last seven years.

There is no mechanism for subscribing to Spotify through the Spotify app, as Spotify has restricted signups to its website in order to avoid paying Apple's fees. "You can't upgrade to Premium in the app," reads Spotify's "Premium" section in its iOS app. "We know, it's not ideal."

Over the years, Apple and Spotify have had a long running dispute over Apple's ‌App Store‌ policies, with multiple public conflicts over app and subscription fees and app rejections due to Spotify's attempts to skirt the up to 30 percent cut that Apple takes from purchases.

In comments made in November 2022, Spotify CEO Daniel Ek accused Apple of giving developers "the illusion of control," and said that the ‌‌App Store‌‌ is a "threat to the future of the internet" that denies consumers choice.

Ek also clashed with Apple over Spotify's audiobooks feature. Apple in 2022 rejected Spotify's audiobook update several times and ultimately did not allow Spotify to direct users to purchase audiobooks through an in-app email signup button.

Things are different over on Android devices. Since November 2020, Spotify has been be able to bill Android users directly in the Google Play version of Spotify without needing to go through the Google Play billing system.

This is because Spotify uses Google's "User Choice Billing," a feature that allows Android users to make purchases using the payment option they prefer. User Choice Billing is essentially an alternative billing option for in-app purchases, and it comes with a reduced fee.

Apple offers no alternative billing from the ‌App Store‌. There are two exceptions, however, including South Korea and the Netherlands. Regulators in these countries have forced Apple to allow some apps to use third-party payment providers.

In the Netherlands, Apple collects a 27 percent commission instead of a 30 percent commission, and in South Korea, Apple collects a 26 percent commission. Both reduced commissions are similar to what Google has done for its User Choice Billing System.

With Google adopting options for alternative billing and continued regulatory pressure, it is possible that Apple will also fold and expand the Dutch and South Korea processes to other countries and app types, but whether the IAP references in Spotify's code relate to such a plan remains speculation at this point.
Tag: Spotify

This article, "Spotify on iOS to Bring Back In-App Purchases, Beta Code Suggests" first appeared on MacRumors.com

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