Google to Test Third-Party Billing in Its Android App Store

From CNET: Google said Wednesday it will allow some developers to offer third-party payment options in apps that run on its Android operating system, a move the search giant has resisted for years.

In a blog post to developers, Google said it had rolled out a pilot program in South Korea that allows Android users to select payment systems other than Google's. Because of security concerns, Google said it's starting with Spotify and other trusted partners.

Spotify will introduce the billing system used by Google Play, the Android app store, alongside its own billing system.

"This is a significant milestone and the first on any major app store -- whether on mobile, desktop or game consoles," Sameer Samat, vice president of product management, said in the blog post. The option to use third-party payment will be rolled out more broadly in the future.

The move comes after years of resistance to third-party payment on Google Play and represents a major change in the way platform owners manage their software marketplaces. Google, along with Apple, controlled payment systems in order to ensure a cut, usually between 15% and 30%, depending on a few factors. The standard practice of forcing all mobile transactions through Google's or Apple's payment systems reduces income for developers. App stores like Google Play have been the subject of alleged monopolistic practices by lawmakers and regulators, both in the US and abroad.

View: Full Article