Google will accept various payment services but why?
Google revealed today that it is bringing India, Australia, Indonesia, Japan, and the European Economic Area into the user choice billing initiative for Play Store, which enables users to select several payment methods for in-app purchases. If they are accepted into the programme, non-gaming developers from all over the world will be able to use 3rd payment services in the regions mentioned above.
In the EEA zone, the search engine giant unveiled a comparable regulation in July for non-gaming developers and consumers. The new regulations are a progression from that. For developers in the EEA region who use third-party billing, the company offered a 3% discount on fees. Google has now reduced developer rates by 4% as part of the new announcement. In the upcoming weeks and months, the corporation promised to provide additional information about that.
Many developers will need to know this information in order to decide if they are willing to go through the trouble of switching payment systems based on the proportion cut Google retains.
More than 99% of Play Store developers, according to the firm, are eligible for 15% or lower fees; nonetheless, the top 1% of developers account for the majority of Play Store earnings. Every year, Google takes a 15 percent cut of the first $1 million paid by developers. After developers generate their first million-dollar profit for the year, a 30% fee is added. Some Google Play Media Experience program-eligible developers pay as little as 10% in fees for their projects, which include apps that offer books, audio, and video.
“Android has always been a particularly open operating system. We continue to optimize our platform and diversify the options accessible to consumers and developers while preserving our capacity to invest in the ecosystem. As we continue to develop and refine with our project partners, we will be releasing more in the upcoming days, a Google representative announced in a statement.
3rd party charging will gradually become available in all areas where Spotify Premium is offered, according to the company, which originally piloted this programme with Spotify in March. Later in May, Google and Match Group reached an agreement on Google’s apps providing other payment alternatives for in-app purchases.
There is still no set schedule for when Google will eventually make this option available for users, similar to Spotify’s third-party charging pilot. Therefore, users might not immediately see a variety of payment options. Once it’s accessible, customers may choose which payment method to use based on the fees and features each one offers by viewing the various payment methods right within the app. They will have to get in touch with the provider if they opt to use an alternative payment method for payment-related concerns, refunds, and cancellations.
The Mountain View-based titan’s decision to roll out third-party billing throughout many areas will put more pressure on Apple to follow suit. Following pressure from local regulators, the iPhone manufacturer now provides alternative billing for all applications in South Korea, reader apps in Japan, and internet dating in the Netherlands.
For customers residing in South Korea, Google already provides a third-party payment method on the Play Store after the nation passed a rule prohibiting businesses from requiring a payment system for in-app purchases. In South Korea, the company does provide a 4% discount on developer fees.
This is a partial victory for the ecosystem of app developers in terms of anti-competitive behaviour, according to Abhishek Malhotra, managing partner, TMT Law Practice. The small-to-midsize developers will benefit from this because they may now emphasise more in-app “paid” features. In light of Google’s prior rules, which required the routing of such payments through the Google Playstore and disallowed 3rd party apps for payments, this is unquestionably a victory for app developers who have been pressing anti-competitive issues against Google.
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