Google Play billing overhaul will open the door to outside payments

Google says it will start rolling out new Play Store billing rules next week, giving Android developers more room to use payment systems outside Google Play. The change matters because Google’s long-running 30 percent app store fee is being replaced with a more varied structure that can lower what developers owe.

The move comes while a court has not yet approved the settlement tied to Epic Games’ antitrust case against Google over the Play Store, The Verge reported. Google said in an Android Developers blog post that the billing changes will apply to developers worldwide.

Under the new model, Google said it is moving from a single billing commission to lower fees that separate, at least in part, the cost of app store distribution from the cost of payment processing. Developers will be able to use Google Play’s billing system, offer another payment method, or direct users to their own websites, according to Google’s support materials cited by The Verge.

Fees will vary by app and payment choice

Google’s cut will no longer be one flat rate. According to Google, the amount depends on several factors: whether the user first installed the app before or after the new fee structure, how much revenue the developer earns, and whether the developer uses Google Play billing.

Google Play billing carries an additional 5 percent fee, according to Google. Developers that use an alternative payment system or link customers to their own sites would not pay that billing add-on, The Verge reported.

For apps making more than $1 million a year, Google’s new rate will be 20 percent for new in-app purchases and 10 percent for subscriptions, according to The Verge’s summary of Google’s rate card. The article did not detail every lower-revenue tier, but said earnings level is one of the factors Google will use to calculate fees.

Programs can lower rates further

Google has also introduced two programs called Games Level Up and Apps Experience, The Verge reported. Google describes them as aimed at “exceptional” and “premium” app and game experiences that meet its requirements.

To qualify, apps and games must meet Google’s guidelines across several areas, according to The Verge. Those include working across device types such as tablets, smart TVs or Android Auto, hitting standards for memory use and crash rates, and supporting recommended features such as cloud saves or phishing-resistant sign-ins.

Developers accepted into those programs can qualify for lower rates on both new installs and existing installs, according to Google materials cited by The Verge. That makes the programs a separate path to reduced fees beyond the choice of billing provider.

Google said some related program changes will begin in certain regions at the end of September and others at the end of the year, The Verge reported. A wider global rollout is scheduled after September 30, 2027, according to the same report.

This story draws on original reporting from The Verge.