Spotify on iOS looks set to revive In-App Transactions, according to Beta Code

Spotify seems to be reintroducing in-app payments within its iOS app, as hinted by coding clues found in the latest beta.

Aaron Perris, a contributor to MacRumors, unearthed these new code references, showcasing an in-app payment system. This includes glimpses of an IAP checkout screen and panels for retrying purchases that didn’t go through.

While it’s unclear what exactly these IAP references indicate, their inclusion is intriguing. For the past seven years, Spotify hasn’t allowed customers to sign up for a Spotify Premium subscription through the ‌App Store‌. Instead, the company restricted sign-ups to its website to avoid Apple’s fees. “You can’t upgrade to Premium in the app,” mentions Spotify’s “Premium” section in its iOS app. “We know, it’s not ideal.”

Over time, Apple and Spotify have been embroiled in disputes over ‌App Store‌ policies, with clashes over app and subscription fees and rejections due to Spotify’s attempts to bypass the up to 30 percent cut that Apple takes from purchases.

In November 2022, Spotify CEO Daniel Ek criticised Apple for providing developers with “the illusion of control,” labelling the ‌‌App Store‌‌ as a “threat to the future of the internet” that limits consumer choice.

Ek also clashed with Apple over Spotify’s audiobooks feature. In 2022, Apple rejected Spotify’s audiobook update multiple times and didn’t allow Spotify to direct users to purchase audiobooks through an in-app email signup button.

The situation contrasts with Android devices. Since November 2020, Spotify has been able to directly bill Android users through the Google Play version without relying on the Google Play billing system. This is possible due to Google’s “User Choice Billing,” providing Android users with the flexibility to make purchases using their preferred payment method, while also reducing fees.

Unlike the ‌App Store‌, Apple doesn’t offer alternative billing. Yet, in South Korea and the Netherlands, Apple has been forced by regulators to permit some apps to use third-party payment providers.

Given Google’s adoption of alternative billing and increasing regulatory pressure, there’s speculation that Apple might follow suit, expanding the Dutch and South Korean processes to other countries and app types. However, it’s unknown if the IAP references in Spotify’s code hint towards such a plan. Another possibility is that Spotify is gearing up to adjust its subscription prices to accommodate Apple’s commission on in-app purchases.

Recently, Spotify announced plans to lay off approximately 1,500 employees, which accounts for 17% of its workforce. This move aims to downsize after a phase of aggressive spending on podcasts and audiobooks. These layoffs mark the third round in a year, with Spotify still grappling with annual financial losses reaching hundreds of millions of dollars.