Tinder, the most popular dating App has bypassed Google Play to cut down on the imposed app store Taxes. This could be a potential loss, large enough to “shake-up the billion-dollar industry” dominated by Google and Apple.
The report comes from Bloomberg that the online dating app has incorporated a new method of payment as a default process that oversteps Google Play and forces the user to enter credit card details right into the App system. Once the user provides for the details, Tinder removes the option of going back to Google Play option at any time for the future payments or purchases.
Macquarie Analyst Ben Schachter in his research claims that this is a high margin business for Google which brings in billions of Dollars into the app store revenue. This kind of change will have huge impacts since it actually makes a huge difference.
The shares of Tinder’s parent/host company, Match Group Inc. elevated through 5% when the note was published on Thursday. When we eventually look at Google’s parent Alphabet Inc, we can see the value of their shares changing.
The App stores of Apple and Google were launched in 2008 and within a short span, they grew into powerful marketplaces that stood up to the level of hosting millions of independent developers with billions of smartphone users. For hosting the Apps on their authentic sites, the company charges 30% of economic revenue. With this measure, the App economy will grow up to $157 billion in 2023 According to a Projection.
As the Market is relatively appearing to grow in reach and size, revolts have neem raising heads in the matter. Spotify Technologies SA filed an antitrust complaint against Apple, claiming that it charges the competitors intensively. Netflix Inc has denied access to users who subscribe through App Store. Similarly, Epic Games Inc. said last year that it would not distribute Fortnite through Google Play.
Match has continued to maintain silence on the question as to whether the company was also investigating bypassing Apple App store. It is expected from Match to deliver the payment flow change with analysts and investors in its next earnings call on August 6.
At Match Group, we constantly test new updates and features to offer convenience, control, and choice to our users,Justine Sacco
Justine Sacco, a spokeswoman for Match, wrote in an email.
We will always try to provide options that benefit their experience and offering payment options is one example of this.
But Google is still responseless to the matter.
As compared to the other Apps who have shunned the App store, Match is the only one who has changed the payment mode in the app whereas many other predict their users to their own websites to perform any purchase or payment transaction.