Google is separating its Play Store service fee from its billing fee.
Google's 10 percent service fee applies to all auto-renewing subscriptions
Google is all set to start external payment options on the Play Store across the United States, the United Kingdom and Europe. The latest move is part of Google's ongoing effort to change its app marketplace policies amid its long-overdue legal proceedings with Epic Games. With the latest update, app developers will have more flexibility in processing payments for digital purchases. The new structure will also reduce the dependence on Google's in-app billing system. The company will roll out the new business model to a wider market in September next year.
In a post on the Android Developers Blog, the search giant announced changes to its Play Store billing policies. The search giant allows developers to offer alternative payment systems and direct users to their websites for purchases alongside Google Play's billing platform starting June 30 this year. The changes will begin rollout initially in the United States, the European Economic Area (EEA) and the United Kingdom.
As part of the latest update, Google is separating its Play Store service fee from its billing fee. As a result, the developers in the US, UK and EEA will see the base service fee start at 10 per cent on their first $1 million (roughly Rs. 9 crore) in annual earnings, regardless of whether they use Google Play Billing, an alternative billing provider or external web links.
The same 10 percent service rate is applicable for auto-renewing subscriptions. For revenue exceeding $1 million mark, the service fee will increase to 20 percent for new in-app purchases.
Google says the service fee for transactions will also depend on whether a user's app installation is considered new or existing relative to the regional rollout date.
Developers who continue to select the Google Play's billing system will need to pay an additional billing fee of 5 percent in the US, UK and EEA. However, this fee will not be applicable to developers who are processing transactions through alternative billing systems and web links. Google said it will reveal billing fee structures for other regions at a later date.
After the initial launch in the US, UK and Europe on June 30, the new billing options are confirmed to be available to Australia on September 30, 2026. It will roll out to Japan and South Korea on December 31, 2026. It will be available in all other markets on September 30, 2027.
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