PhonePe Challenges Google With Zero-Fee Indus AppStore: Report

PhonePe, the Walmart Inc WMT backed fintech giant, unveiled the Indus AppStore Developer Platform, underscoring a significant move to attract Android developers in India.

This initiative directly challenges Alphabet Inc GOOG GOOGL Google's dominance in the app store market — especially in India — where Android holds a significant market share.

The platform, originating from the tech hub of Bengaluru, offers a unique proposition to developers: zero platform fees and no commissions on in-app purchases, starkly contrasting Google's model, which takes a 15-30% cut from in-app transactions.

The Indus AppStore is not just about financial incentives. It boasts many locally relevant features, such as support for 12 Indian languages and third-party payment providers.

The login system is also uniquely designed around phone numbers, making it more accessible to the Indian user base. The platform has already garnered partnerships with various phone makers for distribution.

PhonePe's move is likely strategic, especially given the growing discontent among Indian developers with Google's operational practices, TechCrunch reports. The company's commitment to the developer community is evident. For the first year, developers will have no listing fees, transitioning to a minimal cost after that. Furthermore, to address the concerns of local developers, PhonePe has set up a dedicated India-based team. This team aims to provide timely support, significantly improving Google's often delayed responses and inconvenient U.S. timezone operating hours.

Walmart CFO John David Rainey had voiced expectations for India's Flipkart marketplace and PhonePe payments business as key drivers in doubling the gross merchandise volume it sells in foreign markets to $200 billion in five years.

Akash Dongre, co-founder and chief product officer of Indus Appstore, highlighted the challenges faced by Indian app developers. With Google's Android operating system running on over 95% of smartphones in India, developers have had little choice but to rely on the Google Play store for app distribution. 

India remains a pivotal market for Google, with investments exceeding $10 billion over the past decade. As PhonePe ventures into this new territory, it continues its expansion spree, recently launching an e-commerce app and Share.Market, a platform for trading and investments.

Price Action: WMT shares traded lower by 0.27% at $161.92 premarket on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.