Arguably, one could say that the Android Playstore is the one stop shop for any kind of mobile applications; but then there is the Apple Store. Currently though, the Android platform sees more app downloads than iOS, but the Apple Store continues to dominate in terms of revenue.
Because of this, Google now sees an opportunity to reduce the revenue gap with an out-of-the-box approach for collecting payments for mobile apps on its store. Google plans to do this first in emerging markets, it will be in the form of “pending transactions” which offers users a different way to pay without a credit card.
Lack of access to credit is one of many reasons why users in emerging markets gravitate towards free-to-play and ad-supported games and applications, instead of paid downloads and in-app purchases.
What is Google’s target market for this new payment option?
Over the years, to solve the revenue gap problem between Playstore and Apple Store, Google has been working on establishing carrier billing partnerships among other payment options like support for eWallets. But this does not seem to be bringing in the big fish so far. Carrier billing works for some people but it isn’t really a universally preferred solution.
To reach those users who rely more on cash, Google will be rolling out another payment option that will allow users to walk into affiliate stores and make payments in cash.
We know that emerging markets are a key area of growth for you all, which is why we’re excited to announce ‘pending transactions’.
Aurash Mahbod – Google Director of Engineering for Google Play
This is a new class of delayed form of payment – like cash, bank transfer and direct debit.
How does it work?
With this new option, users will have the ability to choose an alternative payment method during checkout to pay for downloaded apps and in-app purchases. So instead of actually charging a card, the user gets a payment code that they can scan at a nearby store to make payment. After 10 minutes the user gets the app they paid for and a proof of payment in the email.
While this makes paying for apps and updates easier for cash-only Android users, if they later want a refund, they won’t get cash back — only Play Store credit.
This new transaction approach will be available in the version 2.0 of the all-new Google Play Billing Library and will be targeted to emerging markets.
Another notable update is the option, “Subscribe & Install”, which offers users a free trial subscription at the same time they install the app — all in one click of a button.
This feature is currently available in Early Access, and partners who have used the option are seeing an average of 34% growth in paid subscribers, Google said.
Do you think this feature will be welcomed in Nigeria? Do you even pay for your Android apps? As it is, data shows that most Nigerians just go for the free stuff.
