Developers claim that Google is trying to simplify how consumer payments are handled and reduce costs by using their own proprietary service. One major developer, Papaya Mobile, claimed they received an email from Google in August telling them to adopt Google’s Wallet service or risk being ousted from the Android Market (now Google Play Store).

Chris Ziegler from The Verge reached out to Google yesterday for comment and the Internet giant responded quickly. Whereas Reuters wrote that Google offered “no comment”, The Verge claims that Google have not changed their policy on such issues whatsoever and the report from Reuters is unfounded. Though Google will actively pursue developers who violate their policies, nothing has changed in Google’s terms of service for in-app purchases.

Google only insists on Wallet payments for physical goods (via eBay or Amazon) or transferable digital goods like e-books.