Google now lets you drop a cool grand on Play Store apps

Summary

• Google Play now allows developers to price apps up to $1,000, giving them a chance to increase revenue.
• Users should be careful with spending limits on the platform to avoid unexpectedly high bills.
• The new installment payment feature benefits developers targeting enterprise clients and users in select countries.

Google has given developers a significant opportunity by allowing them to price their products on the Play Store as high as $1,000. While this is good news for some developers who may want to take advantage of the increase, users of the Google Play Store’s billing system should watch out for the extended spending limit. This also affects service providers on the platform outside the US, as they can now increase their prices to $1,000 equivalent in their local currencies.

Google Play revealed the new app price limit at the 2024 Google I/O developer conference, prompting Mishaal Rahman to do a deep dive on the topic for Android Authority. The price cap, which was originally $200, became $400 in late 2015, and is now being raised by an additional 150% in 2024 to a whopping $1,000. At this point, it is advisable to password-protect Play Store purchases to restrict expenses — someone else getting their hands on your Play Store account could quickly put a sizable dent in your wallet.

The Android app marketplace has consistently expanded its functionality and reach over the years to more regions. As it is, the Google Play Store distributes apps beyond just smartphones. Millions of users utilize its functionality on tablets, smart TVs, and more. With its prominence and strong brand positioning, it is not far-fetched that some developers would be considering charging more, and some users might be open to paying more for apps and in-app purchases.

Google Play introduces installment payment

Although a lot of apps on the Play Store cost a few dollars, it’s rare to see anything in the triple digits. As Rahman noted in his report, long-term subscriptions might be the most sensible usage of this increased cap, allowing app developers to better target companies with large enterprise user bases. To this end, the Google Play team has introduced a new installment subscription feature that can alleviate financial pressure from yearly subscriptions. At the recently concluded developer conference, Google noted that users are now able to make multiple installment payments over a specified period of time. This is an upgrade from the only option of full upfront payment. Notably, this offer is limited to users in Brazil, Spain, Italy, and France.

Google is in for a revenue surge with the new development of the Play Store. Already, the tech giant charges a 15% service fee on the first $1 million in earnings from developers who use Google Play’s billing system to sell apps or digital goods. Additionally, developers pay a 30% service fee for the entire year on earnings exceeding $1 million annually. In other words, the increased spending limit means more revenue for Google. Developers charge more, users pay more, and Google earns more.