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

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)