Google Play offers users alternative payment options

The European Union wants to limit the power of tech giants with the Digital Markets Act (DMA) so that abuse of power does not happen. Many things will change and in many cases it can have a positive impact on the consumer.

The law was approved by the European Parliament earlier this month and will be effective from the beginning of 2023. Before that, Google wants to streamline its digital business; so the search engine giant is announcing the changes now and making changes soon.

If Google or some other so-called ‘watchman’ doesn’t set this up in time, a hefty fine will hang over your head. This can be ten percent of worldwide turnover or twenty percent when a company makes mistakes over and over again.

Developers get the necessary tools from Google to implement payment options. Once everything starts working, these developers still have to pay Google a fee. Consider twelve percent of a transaction amount for the first million in a year. If you convert more, this could increase to 27 percent. Either way, it’s three percentage points less than the company’s other rates.

Google tries to justify these rates on a support page. You should see these costs not as transaction fees, but as the value you pay for Android and Google Play platforms.

This change ensures that apps don’t simply disappear from Google Play when they offer alternative payment methods within the EEA. This would have happened earlier than the rules in effect from April 1st. About two years ago, Google announced changes that will keep Google Play secure by forcing every app to work with Google’s payment system. However, this kite does not apply within the EEA.

Of course, Google sets some requirements for alternative payment options. For example, application providers must have their own customer service and ensure that payments are made securely. Also, payments can only be made within the app.