Hinge to Launch Mobile Payments, Bypass App Store Fees
▼ Summary
– Hinge’s CEO Justin McLeod announced plans to introduce an alternative payment service by year-end to bypass Apple’s fees.
– A Hinge-run payment system would allow the company to invest more in its product and potentially lower prices for users.
– This move is enabled by the Epic Games v. Apple ruling, which prevents Apple from charging fees on external purchases.
– Match Group, Hinge’s parent company, has criticized Apple’s App Store fees but the new payment service will likely be Hinge-specific.
– Competing payment options like Epic’s platform and Stripe are already available as alternatives to Apple’s system.
Hinge is gearing up to launch its own mobile payment system by year’s end, a strategic move that would allow the dating app to bypass Apple’s App Store fees. During a recent podcast appearance, Hinge CEO Justin McLeod revealed plans for an alternative payment solution that could reshape the company’s financial landscape and user experience.
McLeod explained that circumventing Apple’s 30% commission would fundamentally alter Hinge’s business model. The savings could translate into lower prices for users while freeing up capital for product development. This comes at a pivotal moment for the dating app industry, where competition continues to intensify across all platforms.
The potential shift stems from last year’s landmark Epic Games v. Apple court decision, which loosened Apple’s grip on in-app payment systems. While Apple still maintains strict control over most transactions, the ruling opened doors for developers to explore alternative payment options. Several companies, including payment processor Stripe and Epic Games itself, have already introduced competing solutions.
Hinge’s parent company, Match Group, has long criticized Apple’s fee structure across its portfolio of dating platforms. Interestingly, McLeod indicated this payment system would likely remain exclusive to Hinge rather than being rolled out across Match Group’s other popular apps like Tinder and OkCupid. The decision reflects Hinge’s unique positioning as a relationship-focused platform that prioritizes user experience over rapid scaling.
Industry analysts suggest this move could set a precedent for other subscription-based apps seeking greater financial independence from platform owners. As mobile payment options continue evolving, developers are increasingly looking for ways to retain more revenue while maintaining seamless user experiences. Hinge’s forthcoming system will serve as an important test case for whether mid-sized apps can successfully operate their own payment infrastructure.
(Source: The Verge)
