Alternative billing

What alternative billing is

Alternative billing is a Google Play feature that lets developers process payments through a third-party payment system (Stripe, Paddle, Adyen, etc.) instead of through Google Play Billing. The user still installs from the Play Store, but their card is charged by the developer's chosen processor rather than by Google.

Google introduced a limited version of alternative billing in 2022 under regulatory pressure in South Korea, the Netherlands, and India. The June 30, 2026 changes in the US, UK, and EEA make it a meaningful option for indie developers for the first time, because Google removed the 5% billing fee when developers route payments outside Google Play Billing.

How alternative billing works

The high-level flow:

1. Developer integrates a third-party payment SDK (Stripe, Paddle, etc.) alongside or in place of Google Play Billing.
2. User taps purchase. The app shows the developer's own payment sheet, not Google's.
3. Payment is processed by the third party. The developer receives funds directly, minus the processor's fee.
4. Google still receives its 10% service fee, reported and remitted separately.
5. The developer is responsible for tax collection, refunds, dispute handling, and compliance in every jurisdiction where the app sells.

The service fee to Google does not go away. Only the 5% billing fee does.

When alternative billing makes sense

The fee math is the most direct test. Stripe charges roughly 2.9% plus $0.30 per transaction. Google Play Billing charges 5%. The break-even is around $17 per transaction.

• Below $17. Google Play Billing is cheaper on fees alone. A $9.99 monthly subscription costs $0.50 in Google billing fee vs $0.59 in Stripe fees.
• Above $17. Alternative billing wins on fees. A $99.99 annual subscription costs $5.00 in Google billing fee vs $3.20 in Stripe fees, saving $1.80 per renewal.

The fee math is the easy part. The harder costs are engineering, tax handling, refund workflows, and ongoing compliance. Most indie developers will find that those costs erase the fee savings unless they ship high-priced annual plans or one-time purchases significantly above the $17 break-even.

Cross-store context

Alternative billing is a Google Play feature. Apple's equivalent program is the StoreKit External Purchase entitlement, available in narrow circumstances (reader apps, regulated regions). For most indie developers on the App Store, Apple still requires StoreKit IAP for digital content.

This means a cross-store indie shipping subscriptions to both stores cannot route Apple users through Stripe without major restructuring (or a separate web-purchase flow), but can route Google Play users through Stripe in supported regions starting June 30, 2026.

Does alternative billing save indie developers money?

For subscription apps below $17 per transaction, no. Google Play Billing's 5% billing fee is cheaper than Stripe's 2.9% + $0.30 at that price level. For annual plans above $17, alternative billing saves a few percent, minus engineering and tax handling costs.

What does alternative billing cost compared to Google Play Billing?

Google's service fee (10% on subscriptions) still applies. Alternative billing replaces the 5% billing fee with the developer's chosen processor fee (Stripe at 2.9% + $0.30, Paddle similar). The developer also takes on tax remittance, refunds, and dispute handling.

How alternative billing connects to PricePush

Alternative billing changes which payment processor charges the user, not what country-specific price the user sees. Your localized prices in India, Brazil, or Indonesia are set at the same level regardless of whether you bill through Google or through Stripe. PricePush focuses on the gross-price layer (what the user pays), independent of the billing system underneath.