For years, Google has forced users and developers to use Google Pay for in-app purchases. However, Google announced today the company would allow non-gaming app developers to use alternative services to Google Pay. Here are the details about the company’s new in-app payment system.
Android developers will able to use use alternative payment services in Europe
Google said there would be a 3% reduction from the fee developers have to pay to Google Play due to the in-app transactions. This update emerged after the European Parliament launched the Digital Markets Act (DMA) to force technology companies like Google, Meta, Apple, and Amazon to be fair and open market terms.
Google’s new payment system charges 12% if they use an alternative payment service instead of Google Pay. However, this fee is just for the year’s first $1 million revenue. If they earn more than $1 million, they will have to pay a 27% fee rather than 30% with Google’s new in-app payment system.
The director announced Google new in-app payment system
Google specified this system only for European Economic Area (EEA) users. Therefore, you cannot use alternative payment systems to Google Pay unless you live in EEA. Estelle Werth, Google’s director for EU government affairs and public policy, said, “As part of our efforts to comply with these new rules, we are announcing a new programme to support billing alternatives for EEA (European Economic Area) users” as an official announcement.
Google became more aware of the statements made by the European Parliament after the 8 billion euros fine. European app developers will welcome this feature because their income may rise. Besides, Estelle Werth also added, “As always, we’ll continue to listen to developers’ feedback and invest in helping them thrive on Google Play.”