Apple & Google launch rival online payment systems

Internet giants Apple and Google will go head to head with their new rival payment systems, which have both been developed to enable publishers to charge for access to online newspapers and magazines.

Apple has launched a new subscription service to all publishers of content-based apps on the App Store.

The services is available for iPad, iPhone and iPod touch users and allows publishers to set the price and length of subscriptions their content including videos – either weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly.

Users will be able to select which subscription they would like and will then be automatically charged based on their chosen length of commitment.

Steve Jobs, Apple’s CEO, said: “When Apple brings a new subscriber to the app, Apple earns a 30% share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100%… We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers.”

Apple currently offers more than 350,000 apps – more than 60,000 iPad-specific apps – in 20 categories.

Google has also confirmed the launch of its online charging service for newspapers and magazines – One Pass. The service also enables publishers to charge for content on websites, mobiles and tablets – although keeping 90% of revenue from sales (unlike Apple’s 70% offering).

One pass will initially be available to publishers in the UK, US, Canada, France, Italy, Germany and Spain, with a plan to expand further in the future.

Users will be able to sign in to a newspaper or magazine website once and then pay for content on any other site signed up to the Google service – on the web or through mobile apps. Publishers will have the option to charge for anything, from a single article to an annual subscription.

Google’s rival service promotes ‘more freedom’ to publishers than Apple’s model, claiming to offer more flexibility in payment plans and external links.

Associated Newspapers, which owns the Mail Online, is already thought to be developing a charge-for-access system with Google’s One Pass.