Cost

Tinder announced its new exclusive VIP service Tinder Select, which will cost members almost $500 per month (which works out to $6,000 per year!).

The new service will give top-tier members access to new features like a “VIP search, matching and conversation,” according to Bloomberg, none of which are currently available in Tinder’s existing paid subscription plans. Tinder did not reveal any details about the features.

The new service might have some similarities to exclusive dating app The League, which Tinder’s parent company Match Group acquired last year. There’s a market for exclusivity on dating apps, and the company is betting that offering a premium service will work for Tinder, too.

Tinder has been testing the VIP service, but now it’s an official subscription tier, at least for those invited to join. The new service was only offered to less than 1 percent of the most active Tinder users, according to Bloomberg News.

The Australian Competition and Consumer Commission (ACCC) has brought a lawsuit against dating app eHarmony, alleging the company misled consumers through false advertising. It also alleges that the company deceived its customers about pricing and renewing their subscriptions.

According to The Guardian, the lawsuit filed in Australian federal court alleges the company of “entrapping singles” by showing them only blurred photos of their matches and not allowing them to send messages without paying for a subscription. The lawsuit also accuses the company of luring customers to sign up by falsely advertising “free dating” on the platform, as well as short-term membership offers and early cancellation opportunities.

In reality, users opting for the “free service” completed an 80-question profile survey before they had access to look at potential matches. However, when users completed the questions, they were served blurry profile photos of other members, and were only able to send one message as a reply to a premium member. If they wanted to continue messaging, they were required to pay for the service.

Millennials and Gen Z singles are spending more money on dating, with some going into “dating debt,” where they are spending money on grooming, dinners out, gifts, and other related romantic expenses.

According to a new study by Lending Tree, 22 percent of millennials and 19 percent of Gen Z singles have begun to incur “dating debt.”

And another study by Credit Karma found that among daters aged 18-34, 29 percent said they’ve gone into debt for dating, including 21 percent who’ve said that debt exceeded $500 in one year. Twenty-nine percent admitted they had overspent in an attempt to impress their dates, while 19 percent said they did it to “seek intimacy.”

Popular dating apps like Tinder, Bumble, Hinge and Grindr are trying new subscription pricing to continue to grow revenue, including premium pricing as well as discounts and short-term subscriptions for young Gen Z daters.

Dating app revenue has stalled in recent quarters, and to increase revenue and paying subscribers these companies are looking at out-of-the-box pricing. Match Group is especially motivated, as it has seen revenue drop the past few months while Bumble and Grindr are still seeing gains. Many are starting to offer premium services to highly motivated and more affluent daters, who are willing to spend $500 a month on a dating app if it means better, more curated matches.

On the other end of the spectrum, these same apps want to attract younger daters, specifically the Gen Z market. Match Group is starting to offer short-term weekly subscriptions for those singles who don’t want to commit, as well as discounted pricing to encourage young daters to pay for subscriptions, instead of just opting for the free service and paying for certain in-app features as needed.

Dating app Bumble is releasing new features for its free and premium services, aimed at fostering a kinder, more curated dating experience, according to the company’s press release.

Mashable noted that one of the new features is Review Before You Send, and will be part of its Compliments feature. While Compliments is intended to encourage positive interactions over the app, sometimes the message isn’t received well, no matter the intention of the sender. In fact, as Bumble tested Review Before You Send, they found that 46 percent of people chose to edit their Compliment after they received the prompt, because it encouraged them to reread their message and think twice about sending it.

Another new feature the app is launching allows users to add their interests to the top of their profile (modeled after the app’s hit “Top Artists” feature, where a favorite band or singer is placed front and center in a user’s profile).

Match Group announced in its quarterly earnings call that its star app Tinder will be launching a “high-end” subscription tier this fall. In addition, Tinder will debut a product refresh to cater to the Gen Z dating market.

The company has been testing price points in different markets, including a $500 subscription that was called Tinder Vault, according to CPO Mark Van Ryswyk. In an interview with Fast Company earlier this year, he noted that there’s a market for daters who are willing to pay for good matches, as evidenced by the success of its exclusive dating app The League.

However, the price point was arguably high for an app that will not include human matchmakers, but instead will continue to rely on technology to serve up better matches.