Google Play Store Cuts Fees and Allows Third-Party Billing

Google is reducing Play Store service fees and allowing developers to offer alternative payment systems or direct users to their own websites for purchases.

The changes will begin on June 30, 2026, in the United States, the United Kingdom, and the European Economic Area before expanding to other markets.

Google is also separating the fee charged for access to Play Store services from the cost of using its billing system.

New Fee Structure

Developers will pay a 10% service fee on their first $1 million in annual earnings. The same 10% service fee will apply to all auto-renewing subscriptions, including those offered by developers earning more than $1 million annually.

For other transactions above the $1 million threshold, the fee will depend on when the customer installed or first updated the app through Google Play.

A transaction will count as coming from a new install when the user first installed or updated the app on or after the new fee structure launched in their market.

Installs completed before the regional launch date will be treated as existing installs. The standard service fee for other transactions will be 20% on new installs and 25% on existing installs.

Transactions completed through an external website after a user follows a link from an existing app install will carry a 20% service fee.

Transaction Type First $1 Million Standard Rate Above $1 Million
Auto-renewing subscriptions 10% 10%
Other transactions on new installs 10% 20%
Other transactions on existing installs 10% 25%
External web transactions on existing installs 10% 20%

Separate Billing Fee

Developers using Google Play’s payment system will pay a separate billing fee in addition to the service fee.

The billing fee will be 5% in the United States, the United Kingdom, and the European Economic Area.

This means a developer paying a 10% service fee would pay a combined 15% when using Google Play Billing.

The billing fee will not apply when a developer processes the payment through an alternative billing provider or an external website.

Google has not yet announced billing fees for the other markets included in the later rollout.

Alternative Payments

Developers will be able to offer their own billing system alongside Google Play Billing.

They can also direct users to their websites to complete purchases.

Developers may use Google’s standard payment-choice screen or create their own version in line with the company’s interface guidelines.

The programme is optional, but participating developers must enrol through Play Console, integrate the required billing APIs, and report completed transactions to Google.

Service fees will still apply when developers use alternative payment systems. Only the separate Google Play Billing fee will be removed.

Lower Rates For Qualified Apps

Google is also introducing updated Games Level Up and Apps Experience programmes.

Apps and games that meet all programme requirements will qualify for reduced service fees.

Eligible developers will pay 10% on subscriptions, 15% on other transactions from new installs, and 20% on transactions from existing installs.

External web transactions linked to existing installs will carry a reduced fee of 15%.

Qualified Transaction Type Reduced Rate
Auto-renewing subscriptions 10%
Other transactions on new installs 15%
Other transactions on existing installs 20%
External web transactions on existing installs 15%

The new programme rates will first become available on September 30, 2026.

Rollout Schedule

The expanded billing options and new service fees will launch in the United States, the United Kingdom, and the European Economic Area on June 30, 2026.

Australia will receive the billing changes on September 30, 2026. The Games Level Up and Apps Experience programmes will also become available in Australia, the US, the UK, and the EEA on that date.

Japan and South Korea will receive both sets of changes by December 31, 2026.

Google plans to extend the updated billing system, fee structure, and developer programmes to the rest of the world by September 30, 2027.

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