Alternative payment systems coming soon to Android in the UK? The ball is on the side of the CMA.
Android users in the United Kingdom will soon be able to pay for their apps and services on the US giant’s platform through a different payment system than Mountain View’s. Ten months after the UK Competition and Markets Authority (CMA) launched an investigation into the giant’s in-app payment system, Google has offered alternative options to developers in the country. The investigation follows a separate CMA study that concluded that Apple and Google have an “effective duopoly”in mobile ecosystems and that the Google Play Store in particular could lead to “higher prices and limited choice for Android users”.
Alternative payment systems coming soon to Android in the UK?
The CMA is currently soliciting feedback on Google offerings and will be accepting feedback until May 19th. Should an organization choose to go further with their initiative, developers will be able to offer a payment system of their choice that is called Developer Only Billing (DOB) in the United Kingdom. They could also offer an alternative payment system alongside Google’s system in a scheme called User Choice Payout (UCB).
However, Google will still charge developers for services, which is usually around 15-30% of their income, but this time it will be a little lower. When developers do not offer payment through Google Play at all, the fee will be reduced by 3%. If they choose to offer an alternative payment method along with Google, and the customer does choose to do so, the fee will be reduced by 4%.
Ball on CMA side
The tech giant explained in a post on the subject: “Android and Google Play app distribution service fees will continue to be based on digital sales through our platform. These commissions allow us to continue to invest in Android and Google Play, they reflect the value that Android and Google Play offer and how we make money as a business.”
Last year, Google allowed Android app developers to use third-party payments in several European Union countries. The company also charges a fee in the European Union, regardless of the payment system chosen by the user, but the rates are also reduced if he pays with an alternative payment method.
Google explains that its various commitments will be phased in if the CMA decides to accept them. Initially, the ability to add non-Google payments will be available to non-gaming app developers. Game developers will be able to add alternative payment systems from October 2023.