Dating app Tinder is making another step toward putting a price on love. As cynical as it might sound, this is far from surprising – the popular application has had different tiers of paid subscription since basically its inception.
This time Tinder is rolling out something called Tinder coin – an in-app currency that should encourage people to swipe more, and eventually spend more. These coins will be used to purchase different types of perks inside the app – such as Boosts and Super Likes – and also send gifts to your matches.
Boosts and Super Likes normally cost real money, and Tinder thinks that adding a virtual currency option will allow people to buy perks and gifts without spending real money. Well, how do you earn Tinder coins then?
According to Tinder’s Chief Financial Officer Gary Swidler, people will get Tinder coins periodically if they remain active on the app and update their profile regularly. There’s also the option to buy Tinder coins with real money if you want to skip those annoying requirements.
Tinder coins were actually tested on a small number of users earlier this year, and now the company is rolling out the feature in Australia. If everything goes according to plan, US swipers will be next to receive the new in-app currency feature.
Why Tinder coins and not just real money?
Some of you might remember that back in 2019 Tinder’s parent company, the Match Group, objected to Google taking a 30% cut of in-app revenue generated in its app storefront. Tinder users were being asked to enter their credit card information directly into Tinder’s own payment platform.
Furthermore, after the first payment is made through Tinder’s own channels, every subsequent payment will automatically take subscribers to that option bypassing the Google Play Store’s payment system.
Despite all efforts to avoid paying Google (and Apple) Tinder still allows users to pay for a premium subscription via Google Play Store and Apple App Store. These two methods probably generate the largest part of the revenue, as people are used to paying for other games/services directly from their phones.
It’s not surprising then that Tinder is keen on testing another way to bypass the aforementioned 30% tax, and Tinder coins are a perfect way to do so. There’s another angle to this, as well. Tinder has found that in Asian countries people are more cautious about subscription services and prefer to spend money (virtual money, Tinder coins, or whatever) in single events.
By adding this new feature Tinder hopes to reel in more Asian users that prefer the one-time-payment model. And it’s a win-win situation for the company.
Our take
Tinder has chosen a smart way to play this out. Making these Tinder coins available for grabs without spending a cent (in theory) is a smart move. Granted, staying active on the platform and updating your profile are things that most people do anyway, and giving Tinder coins to reward such behavior would only fortify the positive feedback loop.
The problem is that rates at which Tinder coins will be earned would probably be dwarfed by a simple purchase with real money. And besides, spending virtual coins reinforces the habit of spending in general, and Tinder knows it.
What would happen if you’ve spent all your Tinder coins but still want to use the perks? Chances are you won’t wait for more coins to be generated, and just buy some with real cash. And the beauty of it is that Tinder doesn’t even try to hide this – the company expects Tinder coins to bump the earnings from the app.
Chief Financial Officer Gary Swidler said during the company’s second-quarter earnings call that Tinder users’ “propensity to pay has improved significantly.”
Read more:
