Match Group-owned Tinder has become one among the high-profile software maker to avoid Google’s 30-percent fee for all the transactions that are made via PlayStore. To make themselves free from Google’s fee for in-app purchases, Tinder has integrated its own payment gateway which encourages users to directly pay via Tinder’s system.
This report has been drawn from new research by Macquarie analyst Ben Schachter. This move is almost similar to one that was made by a popular gaming developer Epic Games, who launched its most famous battle royale game Fortnite on Android via its own game launcher instead of directly publishing that app on the PlayStore. This move has been taken by the company just to avoid Google’s 30-percent cut to boost their revenue.
No doubt, Tinder is one of the most profitable apps of Match Group and is also one of the highest-grossing free apps on both iOS and Android. Having Google’s 30-percent cut on the in-game purchases can make a large difference in the revenue collected by the company.
“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 info directly onto Tinder’s servers, the app supposedly defaults to that payment method for any in-app purchase in the future, allowing Tinder to bypass the cut indefinitely.
This is not the first case that any company is redirecting users to its own payment gateway instead of Google’s payment options. Some developers like Spotify and Netflix even kick users over to the website to make payments there instead. Tinder has not yet applied the same change to Apple’s App Store, but it’s unlikely the firm has not yet seriously considered it.