Today, Google announced that it is extending its user-choice payment program for the Play Store – allowing users to choose an alternative payment system for in-app purchases – to India, Australia, Indonesia, Japan and the European Economic Area. The company is calling on all non-gaming developers globally Sign up for this programand if eligible, they can use third-party payment systems in the regions mentioned above.
The search giant has introduced a similar policy for developers and non-gaming users in the EEA region in July. The new principles are an extension of that. The company offered a 3% fee discount to developers using third-party payment methods in the EEA region. In the new announcement, the company said “reasonable service fees will continue to apply,” but did not mention any numbers. The company says it will reveal more details about that in the coming weeks and months.
This information is important to many developers because the percentage that Google does determines if they want to take the hassle of switching payment processors.
The company says more than 99% of Play Store developers are eligible for 15% or less – but the top 1% of developers generate quite a bit of Play Store revenue. Google cut 15% from First 1 million dollars from any developer every year. It then charges a 30% fee after the developers’ first multi-million dollar earnings of the year. Some developers are eligible for Google Play Media Experience Program – including apps that offer books, audio and video – pay as low as 10%.
While this new expansion includes some of the biggest Android markets like India and Indonesia, it omits the US market, where lawmakers discover rules that limit Apple and Google’s monopoly over app stores. In July, the company agreed $90 million settlement with US-based developers on the issue of Play Store fees.
“Android has always been a single open operating system, and we continue to grow our platform and increase the choices available to developers and users, while maintaining the ability to invest in the ecosystem. . We’ll share more in the coming months as we continue to build and iterate with our pilot partners,” a Google spokesperson said in a statement.
The company first tested this program with Spotify in March and said it will gradually offer third-party payments in all markets where Spotify Premium is available. In late May, Google also reached an agreement with Match Group for their apps to offer alternative payment options for in-app purchases.
Google has provided a third-party payment system on Play Store for users in Korea after the country passed law prohibits companies from entrusting payment systems for in-app purchases. However, the company offers a 4% discount on developer fees in Korea.
Like Spotify’s third-party payments pilot, Google will be working with developers to make this option available to users gradually – there’s no official schedule for this yet. So users may not see many payment options right away. Once available, users will see different payment systems directly in the app and they can decide which one to use depending on the fees and features offered by them. If they choose to use an alternative payment system, they will have to contact the provider about payment issues, refunds, and cancellations.
Google Introducing mandatory Google Play payments globally from June 1, but with the new announcement, developers will be able to use other payment processors in their apps for approved regions.
The move by the Mountain View-based giant to introduce a third-party payment method to more regions will put pressure on Apple to take similar steps. The iPhone maker now offers an alternative payment method for Dutch dating app, Reading app in Japanand all apps in Korea after being forced by local regulatory authorities.