We are two developers. I am from the Philippines and the other developer from London, UK. We are done with the game and started adding in-app purchase. I just learned that I cannot open a merchant account as Philippines is not included. But my teammate can since he is in UK. Is it legal if he opens up a merchant account from UK and links to my developer account? Can we legally then implement in-app purchase?
You will have to open a bank account in the UK through a legal representative living there.
The registration process is very thorough in asking you to enter bank information details, so Google will reject countries that are not in this list. Sad, but it's the truth no thanks in part due to legal restrictions worldwide.