Google to accept 3rd-party app payments in Japan

Sep 03 (Nikkei) - Google plans to accept the use of third-party payment services on its smartphone app in most major countries such as Japan and India, but not the U.S., marking a turning point in its conflict with foreign authorities who have been calling for the opening of payment systems to the outside to promote competition.

App developers have only been able to use Google's payment system when distributing their apps on Google Play. In response to growing demand to open up payment methods to third parties, Google will introduce a "pilot program," which will allow developers to choose credit cards or other payment methods.

Major markets such Australia and Indonesia are also included in the program, and app developers have been able to apply to participate in the program starting Thursday.

The program will initially be limited to app developers offering applications that are not games, but Google plans to allow participation if certain conditions are met.

The tech giant has previously collected 15% of sales from most developers as a fee, but will lower this to 11% even when external payment system is used. Developers who have been paying a 30% fee will see it reduced to 26%.

Google began offering its own app store Google Play in 2008, requiring app developers to use its own payment system. However, as the app market expanded, some developers protested that the fees were too high. Authorities in various regions followed, applying pressure to open the payment system to outside parties. ...continue reading

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