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Spotify adds PayPal in bid for profitability

Targeting teens

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Spotify today encouraged more of its users to pay for premium services by integrating PayPal.

Previously Spotify only accepted Visa and Mastercard.

Adding PayPal will open subscription to many more users, particularly under-18s who aren't eligible for a credit card. PayPal payments can be directly linked to bank accounts.

The venture-funded jukebox service faces a battle to convert tens of thousands of non-paying users into £9.99 per month subscribers. Revenues from the advertising Spotify inserts into free streams are understood to be very low.

Earlier this month Spotify closed its doors to new non-payers, citing "huge demand", but would-be users can skip the queue by agreeing to subscribe from the off.

Spotify's biggest hopes of profitability are pinned on its iPhone and Android mobile apps, which allow on demand streaming and caching on the move. They're only available to paying subscribers. ®

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