Walmart-owned PhonePe is set to launch its mobile app store Indus Appstore to consumers on February 21, challenging Google’s Play Store, Moneycontrol has learnt.
The launch comes about four months after the digital payments firm opened up its app marketplace to Android developers, inviting them to publish their app on the platform, as first reported by Moneycontrol in September 2023.
Since then, the company’s website suggests it has onboarded apps such as Flipkart, ixigo, Domino’s Pizza, Snapdeal, JioMart, and Bajaj Finserv. In November 2023, Indus Appstore announced a tie-up to include apps from prominent real-money game developers Dream11, Nazara Technologies, Gameskraft and Mobile Premier League (MPL).
Indus Appstore allows Android developers to list their apps in 12 Indian languages apart from English, as well as upload media and videos to their app listings in these languages.
More importantly, the app marketplace will charge a zero percent fee on in-app purchases compared to the 15-30 percent fee levied by Google Play Store and Apple App Store.
In October 2023, PhonePe said that the app listings on the platform would be free for the first year, following which a “nominal” annual fee would be charged. Developers will also be able to integrate any payment gateway of their choice on the platform, PhonePe co-founder Sameer Nigam said at the time.
Indus Appstore claims to offer 24×7 dedicated India-based support via email or chatbot with “assured assistance and quick resolution of queries”, in a bid to address a common pain point that developers have often faced with Google and Apple. The platform will also offer dedicated account managers.
Consumer app launch
PhonePe had struck partnerships with OEMs (original equipment manufacturers) such as Nokia and Lava to integrate the app store into their devices as of November 2023.
The app is also expected to be available on the Indus Appstore website and consumers can download and sideload the app on their smartphones. It will also offer a mobile number-based login system to attract consumers without email accounts. On its website, the company says it will provide a “localised, contextual and a personalised” experience to users.
This launch comes at a time when Google is facing regulatory scrutiny over the business practices of their app marketplace Google Play in India and several other markets.
In October 2022, the Competition Commission of India directed Google to allow third-party app stores on Google Play as part of the corrective measures in its antitrust ruling. However, the National Company Law Appellate (NCLAT) subsequently set aside this direction in March 2023.
In recent years, Google has also faced intense backlash from Indian developers over its app policies, particularly after the search giant’s announcement in October 2020 that it will begin enforcing a mandatory integration of its Play billing system across the world. Several app developers have mentioned that these commission fees are “extremely high” and “unfair”.
Since then, Google has taken several steps to modify its policies, including lowering its commission fee and introducing third-party billing for in-app purchases. The tech giant claims that these changes comply with the CCI’s order, but many local app developers disagree and have challenged it in court.
On its website, Indus Appstore claims this launch addresses the “pressing need for a homegrown app store built for the unique preferences of the Indian ecosystem.”
Source: Moneycontrol
