Google will lower the fees it charges app developers on Google Play, the Android app marketplace, to as low as 10%. It will also allow developers to direct users to external payment networks or their own websites to encourage payments.
Google Korea said the revamp of its payment policy in a Q&A with KARA Bailey, vice president for Android ecosystem strategy, published on its official blog on the 11th.
Google will introduce a "payment choice program" for app developers. Under it, developers will be able to offer alternative payment methods as well as the Google Play billing system, or direct users to external payment pages such as their own websites.
Regardless of the payment method users choose, the base 10% fee applies up to annual revenue of $1 million (about 1.4 billion won).
For in-app purchase revenue exceeding $1 million annually, different rates apply depending on the payment method. For excess revenue on existing installed apps using Google Play billing, fees of up to 25% are charged, but for payments via external web links, up to 20% applies.
However, for apps eligible to participate in Google's "Game Level Up Program" or the new "App Experience Program," the fee is adjusted to 15%–20%.
For auto-renewing and subscription products, the fee rate remains at 10%.
The policy is scheduled to take effect in Korea starting Dec. 31. However, as Google previously accelerated the local rollout schedule in Japan after consultations with the Fair Trade Commission there, it said it could also implement early in Korea depending on discussions with authorities.
Bailey said, "To evolve our business model, we need to build significant additional technical infrastructure and align with local regulations, so this update is being introduced country by country."
She added, "Google is confident that its current programs comply with Korea's regulations," and "our latest revamp will further strengthen our support for Korean developers by providing more choices and lowering fees."