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Google Opens App Store to Third-Party Payment Systems

payments hub, digital banking

After its appeal was denied by the Supreme Court, Google has finally complied with earlier rulings from the past few years and opened its Google Play app store to third-party payment options. App developers can now process payments outside of Google’s ecosystem and inform users about alternative pricing options.

The move marks the latest chapter in the long-running legal battle between Google and Epic Games, whose flagship product is Fortnite. Epic Games sued Google in 2020, alleging that the company maintained an illegal monopoly through its in-app payment system. Earlier this month, the Supreme Court rejected Google’s final attempt to block a District Court ruling requiring it to open up its app store.

A Wealth of Options

Under its previous policy, Google had long barred developers from directing users to cheaper payment options outside its app store and required most apps to use Google Play Billing. As a result, Google collected a commission on nearly every in-app purchase. For subscription-based models, it typically took a cut of recurring payments as well.

Developers now have more freedom to promote offers and handle in-app payments outside Google’s system. They can inform users about external pricing options and include direct links to external checkout pages within their apps. They can also offer alternative payment methods beyond Google Play Billing, such as credit card, PayPal, or their own payment systems.

The District Court order is set to expire on November 1, 2027, and Google has said it may revise the rules again at that time. The new billing options currently apply only in the U.S.

Following the Apple Ruling

Earlier this year, Apple lost a similar battle with Epic Games and was required to loosen its grip on its App Store. After a U.S. district judge ordered Apple to allow developers to direct users to alternative payment options, the company introduced new hurdles—including a 27% fee on external purchases and warning screens cautioning users about third-party payment links.

That suit was finally settled in May, but the terms imposed on Apple were far less stringent than those Google is now subject to. The main restriction bars Apple from charging commissions or fees on purchases made outside its App Store. Still, Apple continues to seek commissions from Fortnite users, even when their purchases occur outside its platform.

The post Google Opens App Store to Third-Party Payment Systems appeared first on PaymentsJournal.

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