- Google has further extended the deadline for app developers to integrate with the billing system of the Play Store in India.
- The new deadline is March 22, 2021, following a backlash from the Indian startup community.
- There is now more time to cite the RBI’s mandate for recurring payments in India.
Google has decided to extend the deadline for app developers to integrate their payment system with the billing system of the Play Store in India. The deadline was extended from March 31, 2022 to October 31, 2022, in accordance with a
report through money control.
“We recognize the unique needs of the developer ecosystem in India and remain committed to working with developers in India on their growth path. In October 2020, we announced March 31, 2022 as the schedule for developers in India for integration into Play’s billing system. We’re extending this through October 31, 2022 to provide developers in India with the product support they need for recurring payments through convenient user payment systems, including UPI and wallets, and to give them more time in light of the changes in India’s recurring digital payments policy. said a Google spokesman.
This is the second time that Google has extended the deadline for app developers in India using an alternative payment system for their service to integrate with the Play Store’s billing system. Google faced massive backlash from the Indian startup community last year as the company planned to strictly enforce its 30 percent app store commission fee. Google then decided to extend the deadline for app developers to March 31, 2022.
What does this mean for developers?
Google announced last year that every app that sells digital goods and services will use the Play Store’s billing system and pay a 30% commission on in-app purchases. Existing apps that use an alternative in-app billing system will need to remove it and use the Play Store’s billing system.
Google’s reason for this is that users “have secure and reliable payment options and can manage their payments in one central location”. For developers, however, that means using the Play Store’s billing system and getting Google a 30% cut in in-app purchases. The policy applies to apps that offer any type of digital good or service such as virtual currency, extra lives in games, add-on items, subscriptions, ad-free versions, and more.
The tech giant later reduced the commission to 15%, but only for the first $ 1 million in revenue developers generate each year through the Play Store’s billing system. This reduction was announced in early March this year and came into effect in July.
In October of this year, Google also reduced the service fee for all Play Store apps that offer subscriptions from 30% to 15%. The new Play Store fee will be charged from January 1, 2022. In addition, the subscription fee for the Play Store for e-books and music streaming apps has been reduced to 10%.
With the deadline extension, app developers in India will have more time, but Google won’t change the billing system, at least for now. The company, along with Apple, continues to face backlash for its app store fees and mandatory billing systems. But South Korea is the first country to ban Apple and Google from preventing app developers from using other billing systems. Google is also facing an antitrust investigation by the Competition Commission of India (CCI) because of the mandatory use of its accounting system in the Play Store.
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