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Google One Pass – Less Expensive Than Apple’s Service

Google One Pass

Google recently launched One Pass, a new payment platform that allows users to subscribe to online content for a fee. The subscription service is intended for digital newspapers and magazines and will compete directly with Apple’s new subscription service. Google plans to take a 10 percent cut from transactions which is significant lower than the 30 percent charged by Apple.

One Pass will work on tablets and smartphones, as well as Google-related websites and will launch initially in the UK, Canada, France, Germany, Italy and Spain. The announcement comes just a few days after Apple announced new rules for publishers selling subscriptions on its iOS platform. Apple says companies must now offer users the option to buy directly through an iTunes account, handing 30% of the price to Apple. Previously, vendors were allowed to simply direct customers to an external website, keeping all of the profits.

The One Pass system will include user authentication, payment processing and administration, essentially allowing publishers to focus on creating high quality content rather than deal with all the headaches of the back-end administration.

Rather than choose to pay 30 percent to Apple, developers will have the option of implementing One Pass and keep more money. And the bottom line is that most providers will likely move away from Apple since they don’t want to be subjected to the high fees. In comparison, typical credit card processing fee is 2.5 percent. With Google’s One Pass, the extra 7 percent is worth it because Google handles everything on the back-end.

Publishers like Rhapsody, which has a digital music subscription service, have criticized Apple for their high fees. “An Apple-imposed arrangement that requires us to pay 30 percent of our revenue to Apple, in addition to content fees that we pay to the music labels, publishers and artists, is economically untenable,” Rhapsody president Jon Irwin said in a statement. Given that Apple’s terms are so one sided, Google’s One Pass is a great alternative.

Photo Courtesy of Lesa Monster.
Photo Courtesy of cdedbdme.