Investing.com — Spotify Technology SA (NYSE:SPOT) announced Thursday that they have partnered with Google (Alphabet) (NASDAQ:GOOGL) to allow users to pay with Spotify’s payment system or Google Play Billing.
The two options will be side by side in the app and give Spotify listeners the ability to subscribe and make purchases using the payment option of their choice.
The move to allow third-party billing systems inside apps is significant for Spotify, which saw its shares pop 5% in early Thursday trading before falling.
Over the next few months, Spotify will work with Google’s product and engineering teams to build the third-party billing system, which they expect to be rolled out globally. They anticipate launching the first version of User Choice Billing later in the year.
“Spotify is on a years-long journey to ensure app developers have the freedom to innovate and compete on a level playing field,” said Alex Norström, Spotify’s Chief Freemium Business Officer.
“We’re excited to be partnering with Google to explore this approach to payment choice and opportunities for developers, users, and the entire internet ecosystem,” he added.
Source: Investing.com