The transaction fees for the paid apps as well as in-app products in free apps in the Play Store was 30% of the total price till 31st December 2017. And now starting January 1, 2018 the transaction fees has been reduced to 15% of the total price from 30%.
The price reduction for transaction was already under rumour mill since last year as Apple reduced theirs. But, now its official globally, however there’s a condition. The transaction fees will be reduced to 15% from 30% only after 12 months of subscription by the users. Google says that if a user has been currently subscribed to a product for 4 months, then the reduction will take place after the next 8 months.
Thus, now due to this reduction in transaction fees, the providers will be gaining 85% of the total cost rather than 70% as before. Here, the list of subscriptions that will get the reduction of transaction fees.
- Subscribers within a grace period
- Subscribers with introductory pricing
- Subscribers who upgrade or downgrade to a different plan
- Subscribers who re-sign up within two months of canceling
And finally, this is the list of subscriptions which will not be affected.
- Free trials
- Refunded purchases
- Time in account hold
- Deferred time (using deferred billing via the Google Play Developer API)