PhonePe Challenges Google with Zero-Fee App Store Launch in India

PhonePe, the popular Indian fintech backed by Walmart, has unveiled its Indus AppStore Developer Platform, poised to compete head-on with Google's dominance in India's app ecosystem.

With a promise of zero platform fees and no commissions on in-app purchases, PhonePe is set to make a significant impact in the world's largest Android market.

Basic Information of Indus Appstore

PhonePe's foray into the app store arena has been long-anticipated, with a vision rooted in strategic importance. Having secured $850 million in recent funding rounds and the acquisition of IndusOS in 2021, the startup is now ready to make its mark as a prominent app distribution platform.

PhonePe, boasting over 450 million registered users on its payment app, has invited developers to register and upload their apps to this 'made-in-India' app store. Collaborations with smartphone manufacturers for distribution ensure wide accessibility. Notable features include support for third-party payment providers, compatibility with 12 Indian languages, and a phone number-based login system.

For developers, PhonePe has set up an India-based support team to address developer concerns, aiming to rectify the issues faced by local developers dealing with Google's delayed responses and U.S. time zone constraints.

PhonePe's commitment to charging developers no listing fees for the first year, transitioning to a "nominal" cost thereafter. In stark contrast to Google's 15-30% commission on in-app purchases, PhonePe will not impose any such fees.

Alternatives to Google Play Store

PhonePe's entry into the market is timely, as many Indian businesses and startups have grown disillusioned with Google's practices. Despite Android's overwhelming dominance, app developers in India have been limited to a single app store for distribution, leaving them craving for alternatives.

Akash Dongre, co-founder and chief product officer of Indus Appstore, emphasized the need for credible alternatives, stating, "Indus Appstore hopes to provide app developers a credible alternative to the Google Playstore – one that is more localized and offers better app discovery and consumer engagement."

For Google, India is a crucial overseas market where it has invested over $10 billion in the past decade. Despite reaching more than 700 million internet users, the tech giant has faced criticism and regulatory interventions.

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Last year, Google received two antitrust fines in India and had to make significant changes to its business agreements to comply with local regulations. Indian businesses appealed to regulatory authorities for intervention, and initiatives like the Paytm-led mini app store alliance have emerged as alternatives.

With the support of Indian regulators pushing for third-party app stores and features catering to local needs, PhonePe is optimistic that this endeavor will yield greater success than previous attempts.

However, there are still doubts about whether this app store can compete with the large user base of the Google Play Store.


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