- Google Play’s billing systems explained
- Google Play Alternatives
- Impact of the billing systems on startups
- A Final Note
Google Play’s billing systems explained:
Google Play Store is a common application found in every android device. This app allows users to download apps available to android users. But, what about the systems behind the scenes. Every application available on the Play Store had to pay a certain amount to Google. Before going into the various Google Play alternatives, let’s dive a bit deeper into Google’s billing system.
In January 2021, Google passed a new rule that mentioned that all the developers selling apps and other digital goods on Google Play Store must strictly follow the new billing system. Like Apple, Google also imposed a 30 percent commission on all the apps distribution and downloaded via the play store.
This mandatory billing also includes the in-app purchases of virtual items, a subscription, or other services. This includes games, fitness apps, music, dating apps, education, etc. Besides this, a free application also has to pay this commission from the revenue generated through ads. This has hindered many developers, and considered leaving Google Play and searching for any other Google Play Alternatives.
Even though Apple had the same billing system, the majority of the Indians are Android users. This accounts for over 95 percent of the users in India.
According to Gaurav Garg, the founder of StudyIQ, it is true that the user base of the app increases via the Play Store. Still, it is also impossible to pay 30 percent of the revenue generated to them.
Besides this company, other companies that haven’t hit profitability are going to get affected.
According to another owner of a SaaS(1) company, Biz Analyst, that offers tech applications and services to SMBs mentioned, ” SaaS module companies here have a less and a fragile margin for profit. Hence, it is tough to pay approximately thirty percent to Google. This will directly impact the SMBs or even the end customers.”
StudyIQ also mentioned that the only way to cope with this billing system is to increase the courses and services offered.
Now, we know the many troubles and cons of Google Play Store’s theory percent commission. Now, let’s see some of the Google Play alternatives.
Google Play Alternatives:
While Android supports almost many other third-party app stores, Google Play Store’s reach and connections are the best. Hence, many startup apps and techs prefer this over other Google Play Alternatives such as Galaxy stores, Huawei app gallery, IndusOs, Mi stores, or many more.
The founder of a fantasy gaming startup, Fantasy Akhada, also mentioned that people are skeptical of the app if it is not found on Google Play Store. Hence, many users won’t bother downloading it and ignore it completely. But, the profit of Fantasy Akhada is also going down massively due to Google’s billing systems. Google Play Alternatives such as Galaxy, Mi, do not have an extensive reach.
Impact of billing systems on startups:
While huge companies like Amazon, Netflix, Tinder, etc. can afford this thirty percent commission, startups get hugely impacted. It would be a humongous and an impossible task for the startups to muster thirty percent of their revenue generated and pay it to Google. Many apps supporting in-app purchases increased the cost of their digital services and other goods to cope with the huge loss. Many other small fitness and dating apps are getting kicked out of the store.
Many Indian startups decided to call out and design an Indian App store like Google Play Alternatives. More than 150 Indian startups are allying an Indian App store and completely severe India’s reliance on Google Play Store. This is going to become one of the most popular Google Play alternatives.
Interestingly, according to another report, the Indian government is also planning to release an Indian App store. The dating company Quack quack is also planning to get their services out of the Google Play store and start working on direct downloads.
A Final Note:
Even though many Google Play alternatives are booming, an important point to note is that any app store focuses on making money, whether it is an Indian-based store or not. Hence, it is expected for the Indian App stores to reduce the commission rates.
Even though the Google Play store takes thirty percent, it is essential to note that it has the most extensive user base. Hence, Google Play is one of the most popular and most used app stores. Many companies requested Google to reduce the commission, and are hoping to hear good news anytime soon.