Google is allowing European app store developers to offer alternative payment options for end users. As a result, Google’s own payment system is no longer mandatory. The tech giant says it’s anticipating for upcoming laws and regulations.
European Android developers can now choose alternative in-app payment methods over Google Play’s system. End users have a larger pool of in-app payment options as a result.
Offering alternative payment methods is subject to conditions. The option does not apply to gaming apps, for example. Gaming applications are still bound to the Google Play payment system. In addition, alternative methods are exclusively available in EU member states and countries within the European Economic Area (EEA).
Furthermore, app developers must pay a service fee. The average EU developer currently pays 15 percent. That rate is dropping to 12 percent for alternative payment methods.
Preparing for DMA
Google is anticipating future laws and regulations of the Digital Markets Act (DMA). The legislation was adopted earlier this year. Although the DMA is not yet enforced, the tech giant wants to meet requirements in advance. The laws and regulations curb the power of big tech. We covered the DMA’s consequences in an earlier article.
Apple sees things differently
Apple, the second major app store provider, is opposed to alternative payment methods. The tech giant recently fought a long legal battle with Dutch regulator ACM. According to Apple, alternative payment methods affect the App Store’s security. Google, however, holds developers responsible. According to the tech giant, developers have to meet a range of security requirements to implement alternative payment methods.