The recent conflict between Google and Indian app developers has reignited the debate for an indigenous app store yet again. Recently, digital payments and financial services firm PhonePe launched its alternative to Google and Appleâs app stores, marketed as a completely made-in-India product.
At the same time, app developers are also asking the Indian government to build an indigenous platform, leveraging the governmentâs existing capabilities in building open source platforms through ONDC.Â
Even as the impetus to break the Apple-Google duopoly reaches a fever pitch, yet again, experts believe that India does not necessarily have a great track record in indigenous app stores.Â
Take the case of the Paytm Mini App Store. Launched after Google unceremoniously delisted the Paytm App in 2020, the Mini App Store was founder Vijay Shekhar Sharmaâs answer to Googleâs monopoly in the market. Built on open source code, the store integrates digital businesses into the Paytm app, allowing these businesses to access Paytmâs 150 million monthly active users on the Paytm app. Unlike traditional app stores, users cannot download these applications from the Paytm app; rather, these are âlight applications,â running on the platform itself with Paytmâs payments and analytics services in the backend.Â
No success
Nearly three years on, experts note that Paytmâs efforts have not been successful. A cursory look at brands affiliated with Paytm Mini shows none of the applications that challenged Googleâs billing policies at the Madras High Court are in fact on Paytm Mini. âClearly indicating that it is not viewed as a viable alternative, that can direct even a portion of traffic that Google and Appleâs app stores can get for these businesses,â an expert told businessline on conditions of anonymity. Paytm at the time had also marketed itself as an alternative for new digital businesses that might not have the wherewithal to build an app, but that has also not been realised, according to the expert.Â
Sanchit Vir Gogia, Chief Analyst and Founder of Greyhound Research, believes that Paytm did not necessarily make an effort to realise the full potential of the mini app store, âIn the last three years, Paytm had a lot going on with its payments bank business, IPO, etc. In this milieu, the mini app store got deprioritised.â However, Gogia believes that Paytm still has the necessary capabilities to make the mini-app store more formidable if it wants to. âPaytm is uniquely positioned that way,â he explained âWith their capabilities across multiple sectors in the commerce and payments ecosystem, the potential of Paytm to be a discovery platform, especially for new developers, is something that the industry has not completely explored or figured out.â
Another app developer, also adversely affected by Googleâs billing policy and has spoken up about it extensively, believes that platforms like ONDC rather than Paytm could actually evolve to become an indigenous app store soon.Â
Responding to businesslineâs questionnaire, Paytm said, âWe wish to clarify that the platform is up and running successfully. As a listed company, we are required to report significant operational details to the exchange prior to public disclosure.â
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