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Google Pressuring Android Developers To Drop Non-Wallet Payment Systems

Posted: March 8, 2012

Google Wallet for Mobile

Google developers are being pressured to drop non-Google Wallet based payment systems in an attempt to make the new platform the leading payment system.

Developers speaking to Reuters were allegedly warned that to stay on the Google Play Store (Android Market) they had to use Google Wallet for paid apps.

While the practice began in August 2011 it has recently come to light as one developer claims Google gave them just 30 days to make the change or get booted from the app store.

Google takes a 30 percent cut within its platform which forced many developers to look for cheaper alternatives that wouldn’t so greatly affect their bottom line. Among

Google isn’t commenting on the approach which is a drastic shift away from the company’s original “unrestricted” access approach to the Google platform. What we do know is that an inconsistent payment system was causing confusion among users. For example iOS users all use the Apple payment system for in-app and direct buy purchases whereas Android users were faced with dozens of potential payment platforms that all required entering credit card and other personal information.

In the past Google placed a heavy emphasis on free apps and that strategy still remains in place, however with more paid apps and an increase in in-app purchases it makes sense that Google would want to secure a 30 percent cut of each sale made on its platform.

In the meantime Google must determine how much their “open platform” status will be placed in jeopardy by placing an increasing number of restrictions on how developers create applications for the worlds number one mobile platform.

Do you think the Google Android system would benefit from a streamlined payment system run by Google Wallet?

Category: Mobile
Tags : , ,
Posted: March 8, 2012
James Johnson

By James Johnson









Comments


5 Archived Responses to “ Google Pressuring Android Developers To Drop Non-Wallet Payment Systems ”

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  2. Google is exploiting its monopolistic status as the sole payment processor on its app market by charging its developers a 30 percent processing fee, which is precisely what Apple and Facebook are doing. It is truly amazing how these companies can get away with charging such astronomically high fees. I can't even imagine what people will say about us (and to us), if we even tried to charge our merchants anything remotely close to that rate. For a more detailed analysis: http://blog.unibulmerchantservices.com/google-wallet-and-the-bane-of-multiple-payment-choices.