Tinder Skips Payments Via Play Store To Save 30 Percent On Commission
When it comes to dating applications, Tinder is one of the first names that cross one’s mind. The application was originally launched in the year 2012 and it has now become a global success. Although the app is free to download and use, a paid membership is also offered that adds several functionalities like an unlimited number of swipes, changing the location information and the ability to see whether a message has been read or not.
According to a latest piece of news, the company is making a massive transition in its default payment process that skips authentication via Google Pay.
Instead, the users will now be prompted to an external web link that will redirect incoming transfers via Tinder’s very own gateway. Noteworthy, once a user enters their credit card details into this gateway, their payment information is automatically stored with the company. Besides, this also removes the choice to switch back to Google Play for making any future purchases.
Nevertheless, a senior company executive who addressed the update has a justifiable reason behind this unforeseen change. Correspondingly, Google, that operates Play Store charges a mandatory 30 percent commission on every transaction that is made via its digital distribution service. Therefore, the platform is a huge moneymaker for the company and it rakes in billions of dollars in terms of revenue each year. 
While Tinder going this path won’t affect Google in a radical manner, the profit margins of the former will rise significantly. Besides Tinder, the developer of Fortnite, Epic Games had previously chosen to go the same path as it distributed the game apk aka installer via its own servers and not Google’s.
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Conclusively, Analysts suggest that this move can have a domino effect and if other huge corporations plan to go down this road, Google will have to devise a mechanism to prevent this from happening and arresting any future loses.
Do you think that Google should wave off its commission on Applications distributed via play store which may help in reducing the price of a given service? Let us know in the comments below.
