Could DSPs Follow Hinge’s Lead & Build Payment Processing?

Hinge’s CEO Justin McLeod recently announced plans for the dating app to introduce its own payment processing system outside the Apple App Store. The rationale: by circumventing Apple’s 30% commission on in-app purchases, Hinge can reduce costs and potentially pass those savings on to consumers.

This announcement comes amid a broader industry debate about platform fees and the power of app store gatekeepers. According to a recent survey of iOS users, many consumers would need a substantial discount—as much as 20%—to be convinced to use a payment method outside the App Store’s environment. This highlights a significant challenge for Hinge and other apps looking to take control of their own financial transactions.

Hinge’s move is more than just a business decision, it’s also a potential blueprint for massive changes in the relationship between apps and users. If Hinge and parent company Match Group successfully implement and popularize their own payment processing, it’s not that hard to imagine streaming services like Amazon Music, Tidal, and Deezer following suit. Spotify in particular has long chafed at Apple’s service fees and the prospect of keeping more of the revenue by handling payments themselves has already moved forward.

Heading down this road isn’t without obstacles though—Hinge will need to prove the model is successful before more DSPs are likely to jump on board. Consumer trust is a major concern, with Apple’s App Store widely regarded as a secure and reliable payment platform that makes it easy to cancel unwanted subscriptions. Many users are reluctant to share their financial information directly with individual apps and services.

And even if Hinge is successful with its payment processing roll out, it will still have to offer App Store payments to remain compliant with iOS developer requirements. Spotify has already tested the waters by informing iOS users that they can subscribe outside of the App Store. If consumers respond positively—which Spotify says they have—it could be the shift of tides for other DSPs to follow suit.

Spotify’s new iOS experience allows users to see the full subscription pricing and promotions in the app, with a single tap directing them outside of the App Store. As of now, Spotify is the only major music streaming service that has publicly updated its iOS app to include direct links to subscription payments following the Epic v. Apple ruling. Other platforms like Tidal, Deezer, and Amazon Music could quickly follow suit for better control over pricing and user billing—especially if Hinge is successful with this payment processing experiment.