Indonesian Political, Business & Finance News

Google Play Store Payment System Changes: Could Digital Subscription Prices Fall?

| | Source: MEDIA_INDONESIA Translated from Indonesian | Business
Google Play Store Payment System Changes: Could Digital Subscription Prices Fall?
Image: MEDIA_INDONESIA

Changes to the payment system on the Google Play Store have become an important issue for Android users, app developers, and digital business players. Many parties hope this new policy will make in-app purchases and digital subscriptions cheaper. However, price reductions will not happen automatically. Under the scheme presented, Google is indeed providing more room for developers to use alternative payment systems within apps or to direct users to payments via their own websites. Nevertheless, the final decision on pricing remains in the hands of each developer. This means the impact of this policy must be read from two sides: the opportunity for service fee savings for developers and the possible benefits passed on to consumers. If developers choose to share that efficiency, users could enjoy more competitive prices. If not, the new fee structure could simply become additional margin for app developers. The main change lies in the opening of alternative payment options. Previously, the Android app payment ecosystem was closely tied to Google Play Billing. Under the new scheme, developers have the opportunity to provide other choices, either through alternative payment systems within the app or through payment channels on the developer’s own website. This scheme is also accompanied by changes to the service fee structure. The standard service fee for transactions from new installations is reportedly 20% for in-app purchases and 10% for subscriptions. However, if developers continue to use Google Play Billing, there is an additional billing fee. An example cited is an additional 5% in the United States, the United Kingdom, and the EEA. Thus, the choice of payment method can affect the total cost borne by the developer. The opportunity exists, but it cannot be confirmed with absolute certainty. The reduction in service fees can give developers room to lower prices, offer discounts, or provide more attractive subscription packages. However, developers can also choose other strategies, such as maintaining old prices and using the fee difference as additional profit margin. This decision can be influenced by many factors, ranging from operational costs, revenue targets, and user acquisition costs, to competitive strategies in each app category. For consumers, this change means the price of digital services may become more varied. In practice, users need to compare the prices offered in the app with the prices available through the service’s official website, if that option is provided. Users should pay attention to the total cost, payment method, transaction security, and subscription cancellation terms before making a payment. In Indonesia, the Play Store payment system change has an important context related to a competition case. The KPPU previously stated that Google required the use of Google Play Billing and imposed service fees of 15% to 30%. The Supreme Court rejected Google’s appeal on 10 March 2026, making the KPPU’s decision legally binding. The KPPU ordered Google to stop mandating the use of Google Play Billing. Google was also asked to open User Choice Billing with an incentive of a service fee reduction of at least 5% for one year from the date the decision became legally binding. For app developers in Indonesia, this condition potentially opens wider room to determine payment channels. Developers can evaluate whether to continue using Google Play Billing, provide alternative payment options, or direct users to their own websites. The change in the Play Store payment system opens a new chapter in the Android app ecosystem. For developers, this policy provides greater room to manage payment channels and pricing strategies. For consumers, the impact could be felt on subscription fees, digital item purchases, and premium services in apps. However, app and digital subscription prices will not automatically become cheaper. The potential for price reductions will only be felt if developers pass on the service fee savings to users. Therefore, consumers need to be more active in comparing prices and paying attention to the payment channels offered by each app.

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