Google Wallet to Support Subscription Billing, Add Low-Value Pricing Tier
June 28, 2012
At the Google I/O Conference yesterday, the search engine giant revealed some changes to Google Wallet that affect how merchants can charge for digital goods and how much they pay to process Google Wallet transactions for those goods. Like Facebook did recently, Google has added support enabling merchants to offer periodic billing, Pali Baht, the company’s product manager for digital goods, told developers at the gathering in San Francisco. Baht said support for subscriptions was the one feature asked for most by merchants interested in accepting Google Wallet payments.
Google also said yesterday it has altered its pricing on digital products to offer more advantageous terms for low-value purchases. Previously, merchants paid the same 1.9 percent plus $.30 per transaction for all transactions. To benefit merchants selling low-value digital content, the company has added a pricing tier that charges a simple 5 percent per transaction for purchases worth $9.67 or less. The system will apply the most advantageous pricing automatically.