Google to reduce Play Store service fee to 15% for first $1 million revenue
The service fee reduction will be available to every Play developer that uses the Play billing system, regardless of size
Tech giant Google will reduce the service fee for Play Store to 15% for the first $1 million of revenue every developer earns each year starting 1st July. The move will see a 50% reduction in fees for 99% of developers globally that sell digital goods and services with Play.
The service fee reduction will be available to every Play developer that uses the Play billing system, regardless of size.
"Starting on 1st July 2021 we are reducing the service fee Google Play receives to 15% for the first $1M (USD) of revenue every developer earns each year. With this change, 99% of developers globally that sell digital goods and services with Play will see a 50% reduction in fees," Android and Google Play Vice President Sameer Samat said in a blog post.
Samat further stated that these are funds that can help developers scale up at a critical phase of their growth by hiring more engineers, adding to their marketing staff, increasing server capacity, and more.
"While these investments are most critical when developers are in the earlier stages of growth, scaling an app doesn’t stop once a partner has reached $1M in revenue -- we’ve heard from our partners making $2M, $5M, and even $10M a year that their services are still on a path to self-sustaining orbit.
"This is why we are making this reduced fee on the first $1M of total revenue earned each year available to every Play developer that uses the Play billing system, regardless of size. We believe this is a fair approach that aligns with Google’s broader mission to help all developers succeed. Once developers confirm some basic information to help us understand any associated accounts they have and ensure we apply the 15% properly, this discount will automatically renew each year. We look forward to sharing full details in the coming months."
Google also reiterated that developers in India that sell digital goods have to integrate with Play’s billing system by 31st March 2022.
"Last year when we clarified the requirements of Google Play’s Payments policy, we explained that the service fee for Google Play is only applicable to developers who offer the in-app sale of digital goods and services. More than 97% of apps globally do not sell digital goods, and therefore do not pay any service fee. For the developers in India that do sell digital goods, but have not yet integrated with Play’s billing system, they continue to have until 31st March 2022 as announced previously. For the thousands of developers in India that are already using Play to sell digital goods, they can start receiving the benefit of this change as soon as it goes into effect in July."
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