Google to explore third party billing in Play Store, starts pilot with select developers

Google has announced that it will explore additional billing options in the Play Store alongside its own billing system. This will provide a huge relief for the developer community which has been demanding it and even created a coalition for app fairness to mount pressure on app marketplace owners. 

Until now this option was only available to users in South Korea, where Google was forced to implement it due to a rule passed by the South Korean government last August. In January, Apple, which also doesn't allow developers to offer alternative billing other than its own, had submitted its roadmap to allow third-party payment systems on its App Store with South Korean regulators.

However, Google is not rolling out the option for additional billing right away and will first conduct a pilot involving small group of developers including Spotify, one of the vocal critiques of Google and Apple's app marketplace policies. 

In an official blog post, Sameer Samat, vice president, product management at Google said, "We will be exploring user choice billing in other select countries."

"The pilot is designed to help us explore ways to offer this choice to users, while maintaining our ability to invest in the ecosystem," he added.

Having said that Samat reiterated that Google Play’s billing system is built with the highest standards for privacy and safety.  

When users choose Play Store billing, they can be confident that their sensitive payment data will remain secure when they make in-app purchases, he added. 

Apple too has cited user and ecosystem security as one of the primary reasons for not allowing  third party billing on its App Store. 

Samat points out, the pilot will increase Google's understanding of how user choice billing works in different countries and for developers of different sizes and categories. 

Alex Norstrom, chief freemium business officer at Spotify is excited about the pilot and the partnership with Google to implement additional billing. 

"We’re excited to be partnering with Google to explore this approach to payment choice and opportunities for developers, users and the entire internet ecosystem.

We hope the work we’ll do together blazes a path that will benefit the rest of the industry," Norstrom added.

Google and Apple's app store policies particularly the app store fees that range from 15-30% and the restriction on third party billing have irked both developers and antitrust watchdogs in several countries including India, where Competition Commission of India, had ordered a probe last year at the request of industry bodies.