On the 11st, Google announced an update to its Google Play business model via its blog, centered on expanding payment options and reducing commission rates for developers in South Korea.

This update was developed based on ongoing communication with domestic developers. Kara Bailey, Vice President of Android Ecosystem Strategy, stated during a Q&A session that she confirmed that the factors developers value most in an app market are user acquisition and retention, developer tools, and comprehensive business support. Bailey has worked at Google for over 14 years, overseeing operations across the entire Android ecosystem.

The core of this update is the expansion of payment choices. Through a newly introduced payment choice program, developers can offer alternative payment systems alongside the Google Play billing system or direct users to their own websites to complete purchases. However, external links must meet key safety standards, such as maintaining parental controls for supervised accounts and complying with strict security standards like PCI-DSS. Developers can also design their own payment selection screens according to Google's UX guidelines instead of using the Google Play interface.

Another key element is the reduction of commission rates. Regardless of whether a user chooses the Google Play billing system, alternative payments, or external web links, a 10% service fee will be applied as the starting rate on the first $1 million in annual revenue generated through Google Play; this rate also applies to all auto-renewing subscriptions. While a 5% payment processing fee is added to transactions using the Google Play billing system in Korea, no such fee is charged for transactions processed via alternative payments or external web links.

Google Play also announced that it is revamping its existing 'Game Level Up' program and introducing a new 'App Experience' program to support developers expanding globally, particularly in the gaming and webtoon sectors. Apps and games that meet the eligibility requirements will be subject to a new fee schedule with reduced rates. The Game Level Up program provides benefits such as increased store exposure, user engagement features, and lower service fees to game developers who provide high-quality experiences from discovery to gameplay. The App Experience program targets developers who provide excellent user experiences across the Android ecosystem. Because this overhaul requires significant additional technical infrastructure and local regulatory coordination, it is being rolled out sequentially by country.

Regarding concerns about Korean regulations, Bailey stated that the current programs comply with local laws and explained that Google Play has consistently led the mobile app store market in proactive regulatory compliance. She added that this overhaul will strengthen support for Korean developers by providing more choices and lower commission rates.

She also noted that Korea is one of the world's most innovative and dynamic markets for developers in the gaming and webtoon sectors, and that Google Play aims to remain a trusted global partner that supports the business growth and global expansion of these developers. Background information and further details regarding this update can be found on the Google Play blog.