Google's new pilot run for in-app payments and what it means | Jagran Explainer

The new pilot run for in-app payments mean that the tech giant may now allow individual applications to run their own payment systems for in-app payments.

By Mukul Sharma
Sun, 27 Mar 2022 04:20 PM IST
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Google's new pilot run for in-app payments and what it means | Jagran Explainer
Representative image/file

New Delhi | Jagran Technology Desk: Google this week announced a pilot project to explore alternate payment methods for in-application purchases amid consistent attempts by regulators worldwide to not allow third party billing systems while making in-app purchases. The pilot project will first reportedly roll out on Spotify’s application, which has been critical about Apple and Google’s handling of in-app purchases.

What does it mean?

It means that Google may now allow individual applications to operate with their own payment systems. Both on Google’s Play Store and Apple’s App Store, developers have not so far been allowed to introduce their own payment methods as the two companies have forced them to use their proprietary billing system for in-app purchases.

Who else does pilot involve other than Spotify?

The pilot will allow a small number of participating developers, starting with Spotify, to offer an additional billing option next to Google Play's billing system in their apps.

"This pilot will help us to increase our understanding of whether and how user choice billing works for users in different countries and for developers of different sizes and categories," Google said in a blog post.

What is the cause for change?

Critics say that a new competition law in South Korea last year forced Google to allow developers to introduce a second payment system alongside its own there.

Google did not specify the fee that it would collect in the new pilot.

The company is ramping up enforcement of its Google Play Billing requirement, and it has said non-compliant apps could be blocked from publishing updates starting on Friday.

What about India?

In 2020, Google had said it would push through its in-app payment method in India by September 2021. This had led to a significant backlash from India’s tech industry who said Google was abusing its dominance. Prominent Indian internet entrepreneurs including the likes of Paytm’s Vijay Shekhar Sharma and BharatMatrimony’s Murugavel Janakiraman raised concerns about this system with the IT Ministry about the issue and as a result of the pressure, Google said it would defer the enforcement of its rules in India until March 2022. The current deadline to comply with Google’s billing system in India is October 2022.

With inputs from Reuters

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