Experts and developers say that is in part because the Android Market, the dominant store for Android apps, has some clunky features that can be annoying to phone owners eager to make a quick purchase. For starters, Android uses Google Checkout rather than an online payment system that more people are familiar with, like PayPal. As a result, many Android developers make their apps available free and rely on mobile advertisements to cover the cost.

In large companies, when a team is building a new product, there is often pressure to use other products/services offered by the company, even if they are not the best products in the market or the best user experience.

That is a mistake.

Google’s Android Marketplace product and development teams should build the best product they can. For the checkout component, they should use the best product out there – the one that guarantees the best user experience.

Internal and external products should be treated the same and allowed to compete for the right to be part of the product. For example, if PayPal is the best product, they should use PayPal for checkout. This puts the onus on the Google Checkout team to improve their product – it forces them to be competitive and up to scratch. It ensures that the Google Checkout team is never complacent, never just expecting to be slotted in just because they are a part of Google. It forces a startup, competitive mindset onto the team.

This open, competitive approach is not easy to do. In fact, it is very hard. There will be a lot of voices that say that Google should push Google Checkout in order to get adoption up – basically, prop it up. It’s almost always the wrong way to go, in this case for the Android Marketplace and if you are willing to take a bigger picture, for Google Checkout as well.