New Delhi: Paytm founder-CEO Vijay Shekhar Sharma aims to have 1 million mini apps on board the e-wallet’s mini-app store before 2022, when Google starts collecting a 30 per cent fee on each financial transaction happening inside an app listed on its Play store.
“We will bring one million apps before Google opens (its) charging obligation on each Indian developer,” Sharma said Thursday at a conference for mini-app developers organised by Paytm.
The conference was meant to introduce developers to the Paytm mini app store, which was launched 5 October. The mini app store is not yet available for Apple iOS software, and can only be used by those with an Android OS.
Mini apps are different from apps as we know them. They are websites built to provide an app-like experience without having to download them. This, Paytm says, will benefit users by saving data and phone memory. The Paytm mini-app store won’t be so much a store as a portal within the existing app that will allow access to these mini apps.
To encourage more app developers to build mini apps for the Paytm store, Sharma has announced an investment fund of Rs 10 crore, saying it will come with “lenient” terms. “Today, we are announcing Rs 10 crore investment fund for (Paytm) mini-app developers in this country. So, that means people who want to build mini apps on our platform will have an equity investment,” he said.
“This is an opportunity for all of us to build an app ecosystem that is running and controlled by Indian app developers like you and me,” Sharma added.
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‘Google playing like toll collector’
Google announced on 28 September that, beginning 30 September 2021, it will enforce a 30 per cent toll on each in-app transaction done within an app listed on Google Play store. However, for India, Google extended the deadline to 31 March 2022 after Indian developers pushed back against the 30 per cent fee.
Paytm’s mini-app store seeks to break Google Play’s dominance in app distribution on the Android ecosystem.
“…Not just in India, but across the world, the app developers are effectively dependent on a very giant monopoly namely Google, and Google has started to play like a toll collector instead of trying to enable the ecosystem,” Sharma said.
According to Sharma, a consequence of Google charging the 30 per cent fees will be that end customers get charged more by app-makers. “If app developers were charged 30 per cent more… the customer’s cost will increase, my friend. Most of the customers in India who are affected by the pandemic are now being welcomed by this rude shock, you would pay 30 per cent for your digital toll,” he said.
“One company will take 30 per cent of everyone,” said Sharma, adding, “This 30 per cent absolutely goes out of the country.”
Sharma said the Paytm mini app store is a “new commitment from Paytm side to the Indian startup ecosystem”.
Addressing concerns about how the Paytm mini app will work, Sharma said customer data of developers will not be taken by Paytm. “Data of your customers belong to you,” he added.
Sharma also discussed other ways Paytm plans to encourage and promote app developers to join the mini app store. Mini apps, he said, will be placed on the Paytm app home page to ensure more customers can discover the service. “Because your app deserves this traffic from us,” Sharma added.
The Google fees
The 30 per cent fees on in-app Google transactions has been in place for many years now, but wasn’t imposed strictly, with certain apps using independent billing systems instead of Google’s.
In its 28 September announcement, Google said it had received feedback that language used in its policy was not clear enough and was creating confusion about the billing policy and where it applies. In the same blog post, Google said it will enforce the billing policy from 30 September 2021.
“The 30 per cent fees has been there for at least four+ years now. For developers, there is a one-time fee of $25 (approx. Rs 1,800) for creating an account and listing apps,” said Mehul Sutariya, a co-founder and director of Biz Analyst, a company that developed an app to track operations like accounting and inventory management for small and medium businesses.
Disclosure: Paytm founder Vijay Shekhar Sharma is among the distinguished founder-investors of ThePrint. Please click here for details on investors.
Also Read: Paytm back on Google Play Store hours after being pulled down for policy violation