Many apps cost less than a cup of coffee, but some programs on Google Play can be significantly more expensive. Enterprise software and services with annual subscriptions can be quite costly. However, there is a limit to how much developers can charge if they use Google Play’s billing system. Initially, this limit was $200 when Google Play was introduced, but at the end of 2015, it was increased to $400. Now, almost eight and a half years later, Google has raised the app price cap to $1,000.
During the Google I/O developer conference last week, the Google Play team announced that developers can now price their products at $999.99 or the equivalent in local currency. This is a 150% increase from the previous price cap of $400 and reflects the maturity of the Google Play app ecosystem in 2024. It’s clear that few products will cost $999.99, even when it comes to in-app purchases. However, given that the opportunity exists, there will undoubtedly be applications that take advantage of this change. Newbie apps that exist solely to show others how rich you are will likely update their prices to reflect Google Play’s new app pricing cap. Certain enterprise programs or services that offer annual subscriptions may also benefit from this change, although it will be difficult to find many examples.
Expanded Billing Tools and Payment Options
On the other hand, Google Play has greatly expanded its billing tools and payment options over the years, adds NIXSolutions. Notably, at I/O, the company introduced a new subscription installment feature that allows developers to offer users the option to pay for long-term subscriptions over time. Developers looking to charge $999.99 for an app or service can use this option to spread payments over time, which Google says has already resulted in an 8% increase in overall subscriptions and a 4% increase in user spending.
We’ll keep you updated on further developments regarding Google Play’s pricing and billing changes.