Google Play user choice billing in India: rules and how to build it

In short

Since 26 April 2023, Indian developers can add a second billing system beside Google Play's; Google cuts its fee by 4% and requires reporting within 24 hours.

If your Android app sells digital goods or subscriptions to Indian users, Google Play's billing system is not the only legal route. After the CCI's October 2022 order, Google opened what it calls user choice billing to every developer in India. This page sets out what the rule allows, what the fee change is, and the steps to implement it, from Google's own help pages and developer documentation read on 1 November 2026. Google changes these terms, so confirm against the linked pages before you commit engineering time.

1. What the rule allows

Google's help page for India says all developers can now offer an alternative billing system alongside Google Play's for their mobile and tablet users in India. If a user pays through the alternative system, the Google Play service fee is reduced by 4%. If you do not plan to offer an alternative, no action is needed when your app already uses Google Play billing.

Google's May 2023 post on the policy lists three options for developers in India:

Use Google Play's billing system.
Offer an alternative billing system alongside Google Play's. This is "user choice billing".
Operate on a consumption-only basis without paying a service fee, where a user can log in and use content paid for somewhere else.

The program covers in-app purchases and subscriptions sold to mobile and tablet users. You may price differently on each system. You may also promote the alternative inside the app, but you must follow Google's user-experience requirements or use its alternative billing APIs so the user sees the choice clearly. Web-based payments in an embedded webview in the app are allowed as an alternative method, and they carry the same trust, safety and fee rules.

2. What it does to the service fee

India currently sits under "all remaining markets" on Google's service fee page. The fee there is 15% on the first $1M of revenue a year and 30% above that for developers in the 15% tier, and 15% for auto-renewing subscriptions. For India, the fee on an alternative-billing transaction equals the fee that would apply via Google Play billing, reduced by 4%.

Google's text says "reduced by 4%" and does not say whether it means percentage points or a 4% cut of the fee. If it means points, a 15% fee becomes 11% on those payments. Check the first invoice before you model the saving. You pay the fee to Google by invoice, with a due date and payment instructions, on the paid transactions made through your own system by users in India. The fee page lists these tiers "until the announced updated service fees are rolled out globally", so the figures can change.

Weigh the saving against what you take on. Google lists what a user gives up when they leave Play billing: parental controls, family payment methods, subscription management, Play gift cards and Play Points. You also take on payment processing, refunds, fraud and support yourself.

3. How to implement it

Google's Android developer documentation describes the technical side. The steps in order:

Enrol. In Play Console, go to Manage account, Play apps settings, Monetization settings, Alternative billing. Accept the terms of service and set up a payment profile.
Meet trust and safety requirements. Certify PCI DSS compliance and give users a way to report fraudulent transactions.
Integrate the alternative billing APIs. For user choice billing you need Play Billing Library 5.2 or higher, and Google recommends a Google Play Developer API backend. Google Play then draws the information and choice screens, so you do not build them.
Set up the choice screen assets. The option on the screen shows your app icon, app name and one image of payment-method logos. The image must be 192dp by 20dp, a PNG with a transparent background, with up to 5 payment-method cards. Logos are optional but recommended.
Opt in per app and per market in the Play Console settings. Changes apply at once, including fee changes.
Report every authorised transaction within 24 hours using the alternative billing APIs. The external transactions API covers initial charges, renewals and refunds. Each transaction carries an ID you generate, which must not contain personal data. For users in India, where tax depends on the state, include the state in the user tax address field.
Handle subscriptions. Provide a subscription management link. Subscriptions that started under manual reporting must be migrated through the external transactions API.
Pay the invoice for the adjusted service fee.

Manual reporting is being discontinued, according to the developer documentation, which points to deadlines on the Play user choice billing page. Do not build a new manual process.

4. A checklist before you start

[ ] List which products are digital goods or subscriptions. Google says its fee applies only when a developer sells digital goods or services in the app.
[ ] Get a quote from your payment partner and compare it with the fee you would save.
[ ] Confirm your partner can certify PCI DSS compliance.
[ ] Plan refunds, chargebacks and support for payments you now handle.
[ ] Design cancellation so it is as easy as sign-up. Running your own billing makes that your job; see subscription retention and our dark patterns guide.
[ ] Decide how you will show the two prices if they differ.
[ ] Set a monthly reconciliation of your payments against your reports to Google.

This is a reading of Google's published terms and not legal advice. If you rely on this for a contract or a tax position, check with a professional.

Questions people ask

Is alternative billing allowed on Google Play in India?

Yes. Google offers every developer in India the option to run an alternative billing system beside Google Play's, for in-app purchases and subscriptions sold to mobile and tablet users.

How much lower is the service fee?

Google says the service fee is reduced by 4% when a user pays through an alternative billing system. It does not state whether that is four percentage points, so check your invoice.

Do I have to report alternative payments to Google?

Yes. Google requires each authorised transaction to be reported within 24 hours using the alternative billing APIs.

Can I charge different prices on each system?

Yes. Google's FAQ says developers can have different prices on each billing system.