Google to allow third-party payment providers in the UK

UK Android users are set to get the option to pay for services and apps on the platform using other billing systems besides Google’s. The move comes 10 months after UK’s Competition and Markets Authority launched investigations into Google’s payment system for making in-app purchases. The probe came after a separate investigation where the CMA found that Google and Apple held a duopoly in the mobile ecosystem. The probe also revealed that Google’s Play Store could lead to an increase in prices and reduced options for Android users.  

Google is offering to give developers in the United Kingdom market the option to use an alternative payment system. At the moment, the Competition and Markets Authority is seeking feedback on the Tech giant’s proposal. If the organization chooses to make these proposals legal based on people’s feedback, UK developers will have the ability to choose the payment system they want to offer in what’s known as DOB (Developer-only billing).

With the new development, app publishers will have the ability to offer alternative payment systems in a scheme called “User Choice Billing”. That said, the tech giant will still charge fees from the developers, typically ranging between 15-30% of their total earnings.

It will only be a bit cheaper than usual, which comes as good news to mobile casino players who like paying with their mobile phones. However, it’s important to note that Google Play only offers gambling apps in about 15 countries where the activity is legalized. Fortunately, casino players outside these countries looking for pay-by-phone casinos can read more here.

When developers don’t have Google Play billing, their service fee will decrease by 3%. However, if they choose to have an alternative payment method together with Google Play billing and the customer uses it, the service fee will be reduced by 4%.

Google has explained that the service fees charged for distributing the apps through Google Play and Android remain constant based on the digital sales recorded on the platform. The tech giant further explained that service fee is how they support their ongoing investments in their systems, which reflects in the value of the services they offer. It’s also how the company earns money as a business.

In 2022, Google allowed app developers for Android systems to use third-party systems in different European Union countries. The tech company also charges service fees in the European Union, regardless of the billing system that users choose. However, the rates will be reduced if they choose to pay through alternative payment methods.

According to the company, its commitments will come in several phases if the Competition and Markets Authority decides to adopt them. Adding a non-Google billing system will be originally available to app developers dealing with non-gaming apps. Game app developers will also have the ability to add an alternative billing system, although that’s expected to start in November 2023.

For both options, the developers will still be required to meet the right user protection requirements set for the region. However, whether that becomes a reality depends on the feedback that CMA receives, putting a keen eye on the proposed service fee reduction and additional elements like the proposed process for reporting turnover related to in-app purchases made on Google Play.