I don't understand how this is a "feature". Is the price different, or the features gained different, or does it just determine who ends up getting what % cut? I can't imagine most people actually care whether Google or Spotify is getting a bigger piece of the same price they're paying either way.
The conditions and trust are different. I personally believe that letting Google have my credit card is allowing a kid with no supervision to play with my life savings; While some others will believe Google provides better guarantees than Spotify when you want to unsubscribe. At least competition will allow us to see “who’s better” and what T&C customers care about, and that’s the important point.
It's not a choice of who's better; it's a choice of who's not worse.
Given a choice of Apple vs. anything, I can't see myself choosing anything over Apple.
Everybody says this then outraged users who hate choice appear.
"Apple provides a more streamlined user friendly experience because you don't have to choose. It just works"
Basic choice for payments became a discount offering for Google cloud use....
Total monopolistic behavior
While that's alluded to in some other comments there is 0 proof of this - it'd be a huge issue if the price for choosing another payment processor (while still likely paying Google their Store % cut on the backend) is being an enterprise customer of a completely separate business unit.