Google Drops In-App Commission to 15% Starting Next Year

In a move that is similar to the cut Apple made for iOS developers, Google has announced that they will be dropping the percentage they keep on in-app purchases.  Starting January 1, 2018, in-app purchases will have a 15% commission rate to the Mountain View company, a drop of 50% from the previous 30% rate.

For developers, this means that they will be able to keep more money when you make an in-app purchase in their app.  Ultimately it is good for developers who will be able to stay funded to further development.  For Google, that means having top-shelf apps in the Play Store.

A knock-on effect of this is it likely will stop developers from looking at 3rd party channels for in-app purchases so they can keep more of the money charged.  Developers end up charging more for the in-app purchases to counter balance the charge from Google.

The good news is that developers really don’t have to do anything.  This change goes into effect January 1st and any in-app purchases made from that date forward are subject to the lower commission rate.  Developers can, of course, lower their in-app purchase prices if they want to do so.

For users, there is no impact other than potentially a drop in the costs of in-app purchases but that is not a requirement.  Just feel good knowing that when you do make that in-app purchase after the new year that more of it is going into the pocket of the developer.  Hey, we all gotta make a livin’.

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