Google changes Play Store rules to allow cashback apps: Why it's important for you and startups in India

In September 2020 Google confronted an enormous backlash from the Indian startup neighborhood after it eliminated Paytm from Play Retailer for a day. Whereas Google by no means gave any clarification for banning Paytm, founder Vijay Shekhar Sharma mentioned Google mistook money again for playing. Paytm bought suspended for working a UPI cashback marketing campaign as Google thought it was some type of playing. The irony was whereas Paytm bought banned for offering cashbacks, Google Pay continued with its scratch and win cashback coupons.
Not simply Paytm, even Zomato and Swiggy needed to take away in-app gamification options after Google slapped notices on each of them. With none readability in insurance policies, startups discovered it powerful to supply enticing reductions and gives to clients.
To be able to make issues straightforward for app builders in India, Google has simplified its Play Retailer insurance policies in order that they know precisely what's allowed and what’s not.
Sticking to its earlier stand, Google has clarified that it doesn't permit Actual Cash Playing apps on the Play Retailer in India. Having mentioned that Suzanne Frey, vp, product, Android Safety and Privateness mentioned, “We remain committed to engaging with industry and government bodies as they deliberate on measures that will best support this industry.”
Indian startups are additionally sad with the 30% Google Play fee for in-app purchases. Whereas Google hasn’t mentioned something about this, the 30% fee rule has already been deferred to April 2023.
Google claims to have mentioned with a number of startup CEOs in India to provide you with simplified insurance policies round loyalty applications and options. “App developers in India are actively building uniquely Indian features and services. One example is the use of mini games, quizzes and other gamification techniques to delight users and convert them into loyal customers. These experiences are often launched during important festivals and sporting events, and getting it right within the specific time window is critically important,” mentioned Frey.
What has modified?
In its new coverage, Google says, “…loyalty programs that reward users with real world prizes or monetary equivalent” are allowed. Nevertheless, builders should take observe that these, “Loyalty program benefits, perks, or rewards must be clearly supplementary and subordinate to any qualifying monetary transaction within the app (where the qualifying monetary transaction must be a genuine separate transaction to provide goods or services independent of the loyalty program) and may not be subject to purchase nor tied to any mode of exchange otherwise in violation of the Real-Money Gambling, Games, and Contests policy restrictions.”
Relating to gaming apps, Google says that “loyalty points or rewards may only be awarded and redeemed on a fixed ratio basis” together with sure particular criterias.
What this implies for you and why is it essential
With a correct coverage in place, app customers can anticipate higher gives and new forms of video games to win cashbacks and reductions for services and products that they purchase/order from these apps. Additionally, correct coverage gives a degree playground for brand new apps, thus rising competitors which is able to finally profit finish customers.
When will information guidelines go stay?
The brand new Google Play Retailer guidelines shall be efficient beginning March 1, 2021.