Google has reportedly threatened to drop developers from the Android Marketplace if they don’t adopt its Google Wallet payment service. The company may have been issuing warnings as long ago as August that alternative payment methods breach the company’s terms and conditions.

“They told people that if they used other payment services they would be breaking the terms of use,” said Papaya Mobile CEO Si Shen. “Whether it’s right or wrong, we have to follow the rules. If we had a choice, the freedom to choose which billing service, then that’s even better. But if we have to follow the rules, we will. I want to maintain a very good relationship with Google. We are very collaborative. It’s very important to the business.”

This would guarantee Google 30 percent of the revenue for games sold on what is now Google Play. It would also ensure lower friction on Android, making the payment system more universal like it is on iOS systems and Facebook.

Source: Reuters