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.

The Android ecosystem has entered a major transition. Following the recent Google's announcement, developers in the US can now integrate external purchase options directly inside their Android apps - a change that aligns with growing regulatory pressure in Europe and the UK, where both major mobile platforms are being pushed toward a more open billing environment. For developers, this marks a historic turning point: after more than a decade of Google Play and the App Store requiring all in-app purchases to run through their own billing systems with fees of up to 30%, the injunction now allows creators to legally guide users to external checkout pages, including simple web-based payment

How External Billing Works in Practice

In Europe, developers generally have three billing paths:

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.

In the UK, only UCB is available now, meaning developers must present both Google Play Billing and their chosen PSP side by side.

Across all routes, Google still collects a service fee and requires compliance reporting. Developers gain freedom, but also new operational responsibilities.

What This Means for Developers

These changes introduce both flexibility and complexity. Developers now have greater freedom to design their monetization strategy while still navigating Google’s reporting, fee structures, and technical guidelines.

Benefits include:

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

Challenges include:

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

In short: developers gain options, but not a fully independent ecosystem.

Why This Opens New Growth Opportunities

With more freedom to integrate external payments, developers can finally rethink how in-app and web-based commerce work together.

You can now:

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

This allows studios (especially mid-size and independent publishers) to compete more effectively with large incumbents.

Choosing the Right Payment Gateway for Your Android App

Once you step outside Google Play Billing, your choice of payment partner becomes a strategic decision. Key considerations include:

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

Among the PSPs approved within Google’s User Choice Billing programs, PayPal isn’t the only option, but it’s a widely recognized one and it stands out for its:

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

This makes it a practical solution for developers seeking a reliable, compliant, and widely accepted external payment method, especially when implementing web-based checkout flows or supporting diverse user preferences.

However, the market is competitive. Other PSPs also provide strong capabilities, and each studio should evaluate partners based on geography, fee structure, tech stack, and expected volume.

Final Takeaway: Turning Regulation Into Revenue

The post-Epic ruling doesn’t just loosen Google’s policies, it provides Android developers with a realistic way to:

Own more of the user relationship,
Improve margins,
Diversify monetization, and
Build stronger cross-platform ecosystems.

External billing isn’t just a regulatory change; it is a business opportunity. With the right PSP, whether PayPal or another high-reliability provider, developers can design payment flows that align with their gameplay, their audience, and their long-term scaling plans.

Suggested Topics:gamingpaypalpaymentthanhtoangoogleplay

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