Starting at the end of this month, Google will implement significant changes to the Google Play revenue model. Developers in Europe, the United Kingdom, and the United States will have more freedom to use their own payment systems, while the commission structure will be adjusted and partially reduced.
The changes will take effect on June 30 for the first markets and build on previous programs that allowed developers to offer alternative payment methods in addition to Google Play Billing. Google is now further expanding these options. Developers of apps with digital content or services may not only offer users an alternative payment system but also, if desired, redirect them directly to their own website to complete purchases.
In addition, developers may design their own selection screen where users can choose which payment method they wish to use, provided it complies with Google’s UX guidelines.
Fees split
More notable is the change to the fee structure. Whereas Google previously charged a single commission, it will now be split into a service fee and a separate fee for using Google Play Billing.
The service fee is 10 percent on the first $1 million in annual revenue. This percentage also applies to auto-renewing subscriptions. Different rates apply to higher revenue levels and other transactions.
Those who continue to use Google Play Billing will pay an additional 5 percent billing fee on top of that. Developers who opt for an alternative payment system or process purchases through their own website are not required to pay this additional fee.
For existing apps, a distinction will be made between existing and new installations during the transition phase. Depending on when a user first installed or updated the app, different rates may temporarily apply.
Google also announced an updated version of the Games Level Up program, as well as a new Apps Experience program. Developers who meet the specified quality and user experience requirements may be eligible for further rate reductions through these programs. The corresponding rates will be available starting September 30, 2026.
Response to increasing pressure
With these changes, Google is responding to increasing pressure from regulators and legislation regarding the dominance of app stores. In Europe in particular, regulations require large platform operators to offer developers greater freedom of choice regarding payments and the distribution of digital services.
Google emphasizes that its own payment system continues to offer advantages, such as handling taxes, subscriptions, local payment methods, and regulatory compliance in more than 195 markets. At the same time, the company acknowledges that some developers need more control over how transactions are processed.
The new payment options will be rolled out in phases. Following the initial launch in the United States, the United Kingdom, and the European Economic Area, Google plans to make the programs available in other markets as well.