Google reduces transaction fees for paid apps from 30% to 15%

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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%.

Play Store Transaction fees

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)
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