Google is reportedly pressuring app makers and mobile game developers to use Google Wallet. Driven by its desire to rival Apple’s iOS platform, Google could be engaging in anti-competitive activity and actually hurting developers’ bottom lines. “Google warned several developers in recent months that if they continued to use other payment methods -- such as PayPal, Zong and Boku -- their apps would be removed from Android Market, now known as Google Play,” reports Reuters, citing several anonymous developers, executives and investors.
Some, however, see Google’s efforts as merely a way of simplifying consumer payments. "Although this move by Google might seem high-handed, it reduces the friction for purchases inside Android apps and therefore makes users more valuable," says Hugo Troche, chief executive of Appsperse, a cross-promotion network for app discovery, tells Reuters.
Still, Google's payment service charges a higher cut per transaction than some competitors, and the claim suggest that the search giant is using its powerful position in the mobile apps market to promote an in-house offering. So far, no word from Google on accusations.