Google to Allow Outside Payments and Reduce Fees for Developers in US, UK, Europe

Google will allow developers to offer outside payments starting on June 30 in the US, the UK and Europe, and it's also doing away with its 30 percent cut for transactions at the same time. The company first announced these changes in March as part of the terms it reached to settle its years-long court battle with Epic Games. Google's new billing choice program will be available to all developers around the world. While their listings will still feature Play store's billing system, they can offer an alternative payment system or link users to their own websites for purchase. Customers will see the choice screen in the image above upon checkout, but developers can design their own screen, as long as it adheres to the company's UX guidelines.

On the same day, Google will also stop taking a 30 percent cut from sales in the US, the UK and Europe. It will separate its service fee from the billing fee, with the former starting at 10 percent on the developer's first $1 million in annual earnings, regardless of what billing system their customers use. That 10 percent service fee will also apply to all subscription auto-renewals. For transactions that use Google Play's own payment system, an additional 5 percent billing fee applies.

Google's commission doubles after the developer's first million in a year for new installs, giving it a 20 percent cut instead of just 10 percent. Auto-renewals will still give it a 10 percent cut, but all other transactions on existing installs will give Google a 20-to-25 percent commission. However, apps that qualify for the Games Level Up and the new Apps Experience program can keep enjoying lower fees when the initiatives go live on September 30. The Games Level Up program are for developers who create high-quality gaming experiences, while the Apps Experience program is for developers who design premium multi-device experiences across Android.

While these changes will only apply to the US, UK and Europe on June 30, Google will be expanding their reach over the coming months until they become the standard worldwide on September 30, 2027.