Industry ranking
Score of 91.5/100 qualifies for PaymentCheck Certification
Spotify Limited demonstrates a strong average payment time of 21 days, well within the standard 30-day benchmark, indicating a generally prompt payment culture. The concentration of 95% of payments within 30 days reflects consistent short-term payment behaviour with minimal deviation toward extended delays. The residual 5% split across the 31–60 day (4%) and over 60 day (1%) brackets suggests isolated rather than systemic delays.
Despite the favourable average payment speed, a late payment rate of 20% introduces a notable reliability concern, signalling that one in five invoices is not settled according to agreed terms. This discrepancy between the average payment time and the late payment rate suggests that while most payments are processed quickly, a meaningful subset of invoices experiences administrative or approval delays before resolution. For suppliers, this creates moderate cash flow unpredictability that warrants attention despite the overall positive payment profile.
Spotify Limited presents a broadly low-risk payment profile supported by a 21-day average and strong within-terms performance, making it a viable trading partner for most suppliers. However, the 20% late payment rate should not be overlooked and suppliers are advised to implement clear invoice tracking, defined escalation contacts, and agreed dispute resolution procedures before contracting. Offering early payment incentives or establishing milestone-based billing may further reduce exposure to the late payment subset.
| Reporting Period | Filing Date | Average Time to Pay (days) | Paid within 30 days | Paid 31-60 days | Paid after 60 days | Not Paid within Terms |
|---|---|---|---|---|---|---|
| 01 Jul 2025 - 31 Dec 2025 | 30 Jan 2026 | 21 | 95% | 4% | 1% | 20% |
This information is as reported by the business, and responses are in their own words.
Standard payment terms
The company enters into a range of agreements in connection with its business activities, typically based on standard terms used across the Spotify group. These include the Spotify General Conditions for the Purchase of Goods and Services, which provide that undisputed invoices are paid within 30 days of the invoice date. For more information, and to view the Spotify General Conditions for the Purchase of Goods and Services in full, please visit https://spotifyforvendors.com/
Were there any changes to the standard payment terms in the reporting period?
No information available
Any other information about payment terms
No additional information
Maximum contractual payment period agreed
45
Spotify raises invoice disputes in good faith and provides written details of the disputed amount. Where requested, the supplier issues separate invoices for disputed amounts.
Has this business signed up to a code of conduct or standards on payment practices?
For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.
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Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
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Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
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Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
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During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No information available
Spotify Limited is a UK-registered company, incorporated in 2007, forming part of the Spotify group. Its official activity classification is other business support services, indicating a support or administrative role within the wider corporate structure rather than direct operation of the platform itself. The Spotify group operates the digital music service Spotify, which the group's own site describes as giving access to millions of songs, along with playlists, charts, artist pages and radio features. As the UK entity, Spotify Limited sits within this international group rather than independently running the consumer-facing streaming service, which is operated at group level, believed to be from Sweden.
Generated from the company's website and Companies House records. Sources: spotify.com