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

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

General Spotify Feature
MacRumors contributor Aaron Perris discovered the new code 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.

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. However, whether the IAP references in Spotify's code relate to such a plan is unknown. Another possibility is that Spotify is preparing to increase the price of its subscriptions to account for Apple's commission on in-app purchases.

Earlier this week, Spotify announced it will lay off about 1,500 employees, or 17% of its workforce, as the company seeks to downsize after a period of aggressive spending on podcasts and audiobooks. The latest round of cuts is the third in a year, with Spotify still facing annual financial losses amounting to hundreds of millions of dollars.

Update: Spotify tells The Verge it has "no plans to switch IAP [in-app payments] on at the moment."

Tag: Spotify

Popular Stories

iPhone 16 Pro Sizes Feature

iPhone 16 Launch Is Just One Month Out – Here's Everything We Know

Saturday August 10, 2024 5:00 am PDT by
Apple typically releases its new iPhone series in the fall, and a possible September 10 announcement date has been floated this year, which means we are just one month away from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design...
macbook pro bb cyber

Apple's M3 MacBook Pro Gets Up to $1,000 Off In Major New Sales, Starting at $1,299 [Updated]

Sunday August 11, 2024 1:54 pm PDT by
Apple's M3 MacBook Pro is seeing multiple high value discounts on Best Buy and Amazon today, with up to $1,000 off select models. This includes a new all-time low price on the entry-level M3 512GB 14-inch MacBook Pro at $1,299.00, down from $1,599.00, and a massive $1,000 discount on the high-end 16-inch model exclusively for Best Buy members. Note: MacRumors is an affiliate partner with Best...
iPhone 16 Pro Right Side Feature

The iPhone 16 is Getting a New Button: Here's What It Can Do

Tuesday August 13, 2024 4:01 pm PDT by
Multiple rumors have suggested that the iPhone 16 models are going to have an all-new button that's designed to make it easier to capture photos when the devices are held in landscape mode. Apple calls the button the Capture Button internally, and it is going to be one of the most advanced buttons that's been introduced to date with support for multiple gestures and the ability to respond to ...
iOS 18 on iPhone Feature

Everything New in iOS 18.1 Beta 2 and iOS 18 Beta 6

Monday August 12, 2024 2:32 pm PDT by
Apple is beta testing iOS 18 and the first update to iOS 18 concurrently, and we got the second betas of iOS 18.1, iPadOS 18.1, and macOS Sequoia 15.1 today alongside the sixth betas of iOS 18, iPadOS 18, and macOS Sequoia 15. Many of the changes in iOS 18.1 are focused on bringing the .1 betas in line with the standard betas, which recently received updates to Photos and Safari, while...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

10 Reasons to Wait for Next Year's iPhone 17

Thursday August 8, 2024 4:40 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different – already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iPhone 17 Slim Feature Single Camera 2

Next Year's Slim iPhone 17 Could Be an 'iPhone Air'

Monday August 12, 2024 8:43 am PDT by
Apple's rumored iPhone 17 "Slim" could be positioned as an iPhone "Air" to boost sales, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained how the "fourth" model in the iPhone lineup since 2020 (the iPhone 12 mini, iPhone 13 mini, iPhone 14 Plus, and iPhone 15 Plus) has largely been a commercial failure. In the case of the Plus model,...

Top Rated Comments

StoneJack Avatar
9 months ago
What is a Spotify? A bankrupt company which doesn't pay artists?
Score: 14 Votes (Like | Disagree)
iBluetooth Avatar
9 months ago
So, if this is coming back it means Spotify was loosing more by not allowing users to upgrade in the App! I guess now they can afford to support the HomePod and Apple Watch :)
Score: 10 Votes (Like | Disagree)
Lounge vibes 05 Avatar
9 months ago
Oh yeah, Spotify.
Still no airplay 2 Support (promised in 2018)
Still no HomePod support (promised in 2020) and this one especially hurts because they wouldn’t stop complaining about Apple locking them out of the HomePod, and when Apple actually caves and allows third-party streaming services, Spotify is a no-show several years later.
No lossless audio support (promised in 2021)
No spatial audio/Dolby Atmos support (almost all of their competitors Have this now)

And yet they’ve still been increasing their prices.
Score: 9 Votes (Like | Disagree)
Victor Mortimer Avatar
9 months ago
I'm still never giving those f***ers money, ever.

Hiding the preference to stop your stupid app from launching at login is inexcusable.
Score: 8 Votes (Like | Disagree)
Abazigal Avatar
9 months ago
I am really not sure what to make of Spotify at the moment.

They have a ton of subscribers, but the majority of them are on the free, ad-supported tier which doesn't really make all that much money. I also question the legitimacy of their subscriber count when you have the family and duo plans possibly inflating their numbers (a family plan counts as 6 paid users even if you aren't sharing it with that many other people).

Spotify has also spent more than $1 billion on podcasting, which doesn't seem to have paid off. The idea was simple - grab more listeners who spend more time on the platform and generate more ad revenue. But the problem is that podcasting isn't the easiest to monetise (eg: Joe Rogan), exclusives are costly, and their bet in going after celebrities and politicians fizzled when it turned out that not many people were interested in listening to the likes of Meghan Markle. Makes Apple look prescient for deciding to just leave podcasts alone and let podcasters do their own stuff.

In short, their move into podcasting clearly hasn't paid off, they appear to be fast running out of money, and they have maybe until 2026 before they start having to service the massive debt they took on during the pandemic.

https://www.billboard.com/pro/spotify-debt-exchangeable-notes/

So yeah, maybe Apple Music just might end up being the last man standing and Spotify finds itself being acquired by another platform like Microsoft.
Score: 6 Votes (Like | Disagree)
sparkinstx Avatar
9 months ago
They're between a rock and a hard place. They don't want to pay the fees (whether all of Apple's fees are fair is debatable), and they just laid off 1,000 employees. I use Apple Music, as does my oldest daughter, but the other two daughters are longtime Spotify subscribers. It'll be interesting to see where this goes.
Score: 5 Votes (Like | Disagree)