The Rise of External Payments on Android: What the New Google Play Rules Mean for Developers
Explore how new Google Play rules enable external payments on Android, what it means for developers, and how to optimize monetization, fees, and growth.

How External Billing Works in Practice
• EEA-only Billing - The app uses only an external PSP. Google charges a reduced 27% fee
• External Offers - Apps link users to an external website to complete purchases, with service fees ranging from 12–27%.
• User Choice Billing (UCB) - Users choose between Google Play Billing or a third-party provider (e.g., PayPal) at checkout.
What This Means for Developers
• A more controlled, branded checkout experience
• The ability to offer local banking methods and non-card payments
• Potential improvements in conversion and user preference alignment
• Possibility of reducing costs compared with traditional card rails
• Google’s service fees still apply
• Not all Play Store features may work with external billing
• Additional compliance, reporting, and PSP integration work is needed
Why This Opens New Growth Opportunities
• Embed a Buy Button inside your game that securely redirects to a browser-based checkout
• Drive traffic to your Web Shop for better LTV, loyalty systems, bundles, and seasonal offers
• Use incentives (loyalty points, exclusive rewards, pricing) to encourage direct purchases
• Retain more revenue, with many developers reporting up to 15% higher net revenue when shifting transactions off-platform
Choosing the Right Payment Gateway for Your Android App
• Scalability for high-volume traffic
• Compliance readiness with Google’s reporting rules
• Coverage across target markets
• Support for alternative payment methods, including open banking
• Fraud and chargeback protection frameworks
• Extensive bank and account connectivity across the US and Europe
• Support for multi-rail payments (bank, card, wallet)
• Fast settlement timelines
• Long-standing merchant protection policies
• Consumer familiarity, which can improve trust and conversion
Final Takeaway: Turning Regulation Into Revenue
• Own more of the user relationship,
• Improve margins,
• Diversify monetization, and
• Build stronger cross-platform ecosystems.
What to read next

PayPal - An All-in-one Payment Platform For All Applications
PayPal Advanced Checkout is a premium, all-in-one payment solution within PayPal Complete Payments

Accepted Payment Methods on Google Play
This article aims to provide businesses with a clear, practical overview of accepted payment methods on Google Play

Sign up for the latest insights
Receive in-depth analysis, market trends, and the latest updates on finance and technology every week.
Join 5,000+ finance professionals. Unsubscribe anytime.