# Time for Google to Step up Payments

**Published by:** [Continuations](https://continuations.com/)
**Published on:** 2011-02-16
**Categories:** apple, google, facebook, payments
**URL:** https://continuations.com/time-for-google-to-step-up-payments

## Content

Apple app store subscription policy is a clear case of overreaching. I have written before about how I don’t think the 30% take rate for Apple is justified or sustainable. Extending that pricing to an ongoing relationship is particularly problematic. The argument – made by no less than Jobs himself – that Apple should be entitled to a 30% cut for a “new subscriber” seems to suggest that these subscribers simply would not exist without Apple. While true that Apple has built a hugely innovative mobile delivery platform it is no longer the only such platform and people frequently learn about apps they want to download outside of the platform. I am not suggesting that Apple shouldn’t take a cut. I am simply arguing that it should be considerably less. This turns out to be a huge moment of opportunity for Google, if they were able to deliver on a payment solution that is easy to use and attractively priced. Payments would be important not just in competing with Apple but also with Facebook. Facebook is taking a similarly large cut of payments made with credits and is also aggressively pushing platform developers to only use Facebook credits. Google faces a huge uphill battle here because they don’t have a lot of consumer credit cards on file, whereas Apple has 100 million or more. They’ll need to come up with a fairly aggressive play here. Instead of spending $6 billion on Groupon, Google could – for instance – give people $50 credit when they link a credit card, get to 100 million credit cards and still have $1 billion left over! UPDATE: That was quick. Google has announced One Pass – now let’s see how aggressive they are about pushing it into the market.

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