I was trying to do something similar to Instagram below -
But i want this curves like Instagram -
Now i am stuck in one more problem - When i typ
Enhancing BackgroundColorSpan by @tttzof351 to support alignment:
import android.graphics.Canvas
import android.graphics.Paint
import android.graphics.Path
import android.graphics.RectF
import android.text.style.LineBackgroundSpan
import kotlin.math.abs
import kotlin.math.sign
class BackgroundColorSpan(backgroundColor: Int,
                          private val padding: Int,
                          private val radius: Int) : LineBackgroundSpan {
    private val rect = RectF()
    private val paint = Paint()
    private val paintStroke = Paint()
    private val path = Path()
    private var prevWidth = -1f
    private var prevLeft = -1f
    private var prevRight = -1f
    private var prevBottom = -1f
    private var prevTop = -1f
    private val ALIGN_CENTER = 0
    private val ALIGN_START = 1
    private val ALIGN_END = 2
    init {
        paint.color = backgroundColor
        paintStroke.color = backgroundColor
    }
    private var align = ALIGN_CENTER
    fun setAlignment(alignment: Int) {
        align = alignment
    }
    override fun drawBackground(
            c: Canvas,
            p: Paint,
            left: Int,
            right: Int,
            top: Int,
            baseline: Int,
            bottom: Int,
            text: CharSequence,
            start: Int,
            end: Int,
            lnum: Int) {
        val width = p.measureText(text, start, end) + 2f * padding
        val shiftLeft: Float
        val shiftRight: Float
        when (align) {
            ALIGN_START -> {
                shiftLeft = 0f - padding
                shiftRight = width + shiftLeft
            }
            ALIGN_END -> {
                shiftLeft = right - width + padding
                shiftRight = (right + padding).toFloat()
            }
            else -> {
                shiftLeft = (right - width) / 2
                shiftRight = right - shiftLeft
            }
        }
        rect.set(shiftLeft, top.toFloat(), shiftRight, bottom.toFloat())
        if (lnum == 0) {
            c.drawRoundRect(rect, radius.toFloat(), radius.toFloat(), paint)
        } else {
            path.reset()
            val difference = width - prevWidth
            val diff = -sign(difference) * (2f * radius).coerceAtMost(abs(difference / 2f)) / 2f
            path.moveTo(
                    prevLeft, prevBottom - radius
            )
            if (align != ALIGN_START) {
                path.cubicTo(//1
                        prevLeft, prevBottom - radius,
                        prevLeft, rect.top,
                        prevLeft + diff, rect.top
                )
            } else {
                path.lineTo(prevLeft, prevBottom + radius)
            }
            path.lineTo(
                    rect.left - diff, rect.top
            )
            path.cubicTo(//2
                    rect.left - diff, rect.top,
                    rect.left, rect.top,
                    rect.left, rect.top + radius
            )
            path.lineTo(
                    rect.left, rect.bottom - radius
            )
            path.cubicTo(//3
                    rect.left, rect.bottom - radius,
                    rect.left, rect.bottom,
                    rect.left + radius, rect.bottom
            )
            path.lineTo(
                    rect.right - radius, rect.bottom
            )
            path.cubicTo(//4
                    rect.right - radius, rect.bottom,
                    rect.right, rect.bottom,
                    rect.right, rect.bottom - radius
            )
            path.lineTo(
                    rect.right, rect.top + radius
            )
            if (align != ALIGN_END) {
                path.cubicTo(//5
                        rect.right, rect.top + radius,
                        rect.right, rect.top,
                        rect.right + diff, rect.top
                )
                path.lineTo(
                        prevRight - diff, rect.top
                )
                path.cubicTo(//6
                        prevRight - diff, rect.top,
                        prevRight, rect.top,
                        prevRight, prevBottom - radius
                )
            } else {
                path.lineTo(prevRight, prevBottom - radius)
            }
            path.cubicTo(//7
                    prevRight, prevBottom - radius,
                    prevRight, prevBottom,
                    prevRight - radius, prevBottom
            )
            path.lineTo(
                    prevLeft + radius, prevBottom
            )
            path.cubicTo(//8
                    prevLeft + radius, prevBottom,
                    prevLeft, prevBottom,
                    prevLeft, rect.top - radius
            )
            c.drawPath(path, paintStroke)
        }
        prevWidth = width
        prevLeft = rect.left
        prevRight = rect.right
        prevBottom = rect.bottom
        prevTop = rect.top
    }
}
Results:
I implement new RoundedBackgroundSpan.kt class extends LineBackgroundSpan, becose it can draw decorate layer for text line-by-line.
class RoundedBackgroundSpan(
  backgroundColor: Int,
  private val padding: Float,
  private val radius: Float
) : LineBackgroundSpan {
  companion object {
    private const val NO_INIT = -1f
  }
  private val rect = RectF()
  private val paint = Paint().apply {
    color = backgroundColor
    isAntiAlias = true
  }
  private val path = Path()
  private var prevWidth = NO_INIT
  private var prevRight = NO_INIT
  override fun drawBackground(
    c: Canvas,
    p: Paint,
    left: Int,
    right: Int,
    top: Int,
    baseline: Int,
    bottom: Int,
    text: CharSequence,
    start: Int,
    end: Int,
    lineNumber: Int
  ) {
    val actualWidth = p.measureText(text, start, end) + 2f * padding
    val widthDiff = abs(prevWidth - actualWidth)
    val width = if (lineNumber == 0) {
      actualWidth
    } else if ((actualWidth < prevWidth) && (widthDiff < 2f * radius)) {
      prevWidth
    } else if ((actualWidth > prevWidth) && (widthDiff < 2f * radius)) {
      actualWidth + (2f * radius - widthDiff)
    } else {
      actualWidth
    }
    val shiftLeft = 0f - padding
    val shiftRight = width + shiftLeft
    rect.set(shiftLeft, top.toFloat(), shiftRight, bottom.toFloat())
    c.drawRoundRect(rect, radius, radius, paint)
    if (lineNumber > 0) {
      drawCornerType1(c, rect, radius)
      when {
        prevWidth < width -> drawCornerType2(c, rect, radius)
        prevWidth > width -> drawCornerType3(c, rect, radius)
        else              -> drawCornerType4(c, rect, radius)
      }
    }
    prevWidth = width
    prevRight = rect.right
  }
  private fun drawLeftCorner(c: Canvas, rect: RectF, radius: Float) {
    path.reset()
    path.moveTo(rect.left, rect.top + radius)
    path.lineTo(rect.left, rect.top - radius)
    path.lineTo(rect.left + radius, rect.top)
    path.lineTo(rect.left, rect.top + radius)
    c.drawPath(path, paint)
  }
  private fun drawTopCorner(c: Canvas, rect: RectF, radius: Float) {
    path.reset()
    path.moveTo(prevRight + radius, rect.top)
    path.lineTo(prevRight - radius, rect.top)
    path.lineTo(prevRight, rect.top - radius)
    path.cubicTo(
      prevRight, rect.top - radius,
      prevRight, rect.top,
      prevRight + radius, rect.top
    )
    c.drawPath(path, paint)
  }
  private fun drawBottomCorner(c: Canvas, rect: RectF, radius: Float) {
    path.reset()
    path.moveTo(rect.right + radius, rect.top)
    path.lineTo(rect.right - radius, rect.top)
    path.lineTo(rect.right, rect.top + radius)
    path.cubicTo(
      rect.right, rect.top + radius,
      rect.right, rect.top,
      rect.right + radius, rect.top
    )
    c.drawPath(path, paint)
  }
  private fun drawRightCorner(c: Canvas, rect: RectF, radius: Float) {
    path.reset()
    path.moveTo(rect.right, rect.top - radius)
    path.lineTo(rect.right, rect.top + radius)
    path.lineTo(rect.right - radius, rect.top)
    path.lineTo(rect.right, rect.top - radius)
    c.drawPath(path, paint)
  }
}
And use it:
private fun initSpannableText() {
    val span = RoundedBackgroundSpan(
        backgroundColor = colors.random(),
        padding = dp(5),
        radius = dp(5)
    )
    with(spanText) {
        setShadowLayer(dp(10), 0f, 0f, 0) // it's important for padding working
        text = androidx.core.text.buildSpannedString { inSpans(span) { append(text.toString()) } }
    }
}
More details about implementation in this article: https://medium.com/@Semper_Viventem/simple-implementation-of-rounded-background-for-text-in-android-60a7706c0419
activity_main.xml
<?xml version="1.0" encoding="utf-8"?>
<FrameLayout
    xmlns:android="http://schemas.android.com/apk/res/android"
    xmlns:app="http://schemas.android.com/apk/res-auto"
    xmlns:tools="http://schemas.android.com/tools"
    android:layout_width="match_parent"
    android:layout_height="match_parent"
    android:background="@android:color/holo_purple"
    tools:context="com.tttzof.demotext.MainActivity">
    <EditText
        android:id="@+id/editText"
        android:layout_width="wrap_content"
        android:layout_height="wrap_content"
        android:hint="Enter text"
        android:textSize="30sp"
        android:gravity="center"
        android:textColor="@android:color/black"
        android:background="@android:color/transparent"
        android:layout_gravity="center"/>
</FrameLayout>
MainActivity.java
import android.graphics.Color;
import android.support.v7.app.AppCompatActivity;
import android.os.Bundle;
import android.text.Editable;
import android.text.Spannable;
import android.text.TextWatcher;
import android.widget.EditText;
public class MainActivity extends AppCompatActivity {
    @Override
    protected void onCreate(Bundle savedInstanceState) {
        super.onCreate(savedInstanceState);
        setContentView(R.layout.activity_main);
        final EditText editText = (EditText) findViewById(R.id.editText);
        int padding = dp(8);
        int radius = dp(5);
        final Object span = new BackgroundColorSpan(
                        Color.WHITE,
                        (float)padding,
                        (float) radius
        );
        editText.setShadowLayer(padding, 0f, 0f, 0);
        editText.setPadding(padding, padding, padding, padding);
        editText.addTextChangedListener(new TextWatcher() {
            @Override
            public void beforeTextChanged(CharSequence charSequence, int i, int i1, int i2) {
            }
            @Override
            public void onTextChanged(CharSequence charSequence, int i, int i1, int i2) {
            }
            @Override
            public void afterTextChanged(Editable s) {
                s.setSpan(span, 0, s.length(), Spannable.SPAN_EXCLUSIVE_EXCLUSIVE);
            }
        });
    }
    private int dp(int value) {
        return (int) (getResources().getDisplayMetrics().density * value + 0.5f);
    }
}
BackgroundColorSpan.java
import android.graphics.Canvas;
import android.graphics.Paint;
import android.graphics.Path;
import android.graphics.RectF;
import android.text.style.LineBackgroundSpan;
public class BackgroundColorSpan implements LineBackgroundSpan {
    private float padding;
    private float radius;
    private RectF rect = new RectF();
    private Paint paint = new Paint();
    private Paint paintStroke = new Paint();
    private Path path = new Path();
    private float prevWidth = -1f;
    private float prevLeft = -1f;
    private float prevRight = -1f;
    private float prevBottom = -1f;
    private float prevTop = -1f;
    public BackgroundColorSpan(int backgroundColor,
                               float padding,
                               float radius) {
        this.padding = padding;
        this.radius = radius;
        paint.setColor(backgroundColor);
        //paintStroke.setStyle(Paint.Style.STROKE);
        //paintStroke.setStrokeWidth(5f);
        paintStroke.setColor(backgroundColor);
    }
    @Override
    public void drawBackground(
                    final Canvas c,
                    final Paint p,
                    final int left,
                    final int right,
                    final int top,
                    final int baseline,
                    final int bottom,
                    final CharSequence text,
                    final int start,
                    final int end,
                    final int lnum) {
        float width = p.measureText(text, start, end) + 2f * padding;
        float shift = (right - width) / 2f;
        rect.set(shift, top, right - shift, bottom);
        if (lnum == 0) {
            c.drawRoundRect(rect, radius, radius, paint);
        } else {
            path.reset();
            float dr = width - prevWidth;
            float diff = -Math.signum(dr) * Math.min(2f * radius, Math.abs(dr/2f))/2f;
            path.moveTo(
                            prevLeft, prevBottom - radius
            );
            path.cubicTo(
                            prevLeft, prevBottom - radius,
                            prevLeft, rect.top,
                            prevLeft + diff, rect.top
            );
            path.lineTo(
                            rect.left - diff, rect.top
            );
            path.cubicTo(
                            rect.left - diff, rect.top,
                            rect.left, rect.top,
                            rect.left, rect.top + radius
            );
            path.lineTo(
                            rect.left, rect.bottom - radius
            );
            path.cubicTo(
                            rect.left, rect.bottom - radius,
                            rect.left, rect.bottom,
                            rect.left + radius, rect.bottom
            );
            path.lineTo(
                            rect.right - radius, rect.bottom
            );
            path.cubicTo(
                            rect.right - radius, rect.bottom,
                            rect.right, rect.bottom,
                            rect.right, rect.bottom - radius
            );
            path.lineTo(
                            rect.right, rect.top + radius
            );
            path.cubicTo(
                            rect.right, rect.top + radius,
                            rect.right, rect.top,
                            rect.right + diff, rect.top
            );
            path.lineTo(
                            prevRight - diff, rect.top
            );
            path.cubicTo(
                            prevRight - diff, rect.top,
                            prevRight, rect.top,
                            prevRight, prevBottom - radius
            );
            path.cubicTo(
                            prevRight, prevBottom - radius,
                            prevRight, prevBottom,
                            prevRight - radius, prevBottom
            );
            path.lineTo(
                            prevLeft + radius, prevBottom
            );
            path.cubicTo(
                            prevLeft + radius, prevBottom,
                            prevLeft, prevBottom,
                            prevLeft, rect.top - radius
            );
            c.drawPath(path, paintStroke);
        }
        prevWidth = width;
        prevLeft = rect.left;
        prevRight = rect.right;
        prevBottom = rect.bottom;
        prevTop = rect.top;
    }
}
                                                                        Modified @Rahul_Tiwari's version to automatically scale the padding and corner radius when the text size changes. It scales based on percent change from a default text size value. Plus setShadowLayer as needed. It also adds padding to the top and bottom of the text so the padding is equal on all sides.
import android.graphics.Canvas
import android.graphics.Paint
import android.graphics.Path
import android.graphics.RectF
import android.text.style.LineBackgroundSpan
import android.view.Gravity
import android.widget.TextView
import kotlin.math.abs
import kotlin.math.sign
class BackgroundColorSpan(private val tv: TextView,
                          backgroundColor: Int,
                          private val defaultTextSizePx: Float,
                          private val paddingToTextSizeRatio : Float = 0.125f,
                          gravityAlignment: Int = Gravity.CENTER) : LineBackgroundSpan {
    private val rect = RectF()
    private val paint = Paint()
    private val paintStroke = Paint()
    private val path = Path()
    private var prevWidth = -1f
    private var prevLeft = -1f
    private var prevRight = -1f
    private var prevBottom = -1f
    private var prevTop = -1f
    /***
     * Gravity.CENTER_HORIZONTAL
     * Gravity.LEFT
     * Gravity.RIGHT
     */
    private var gravityAlignment : Int
    init {
        tv.includeFontPadding = false
        paint.color = backgroundColor
        paintStroke.color = backgroundColor
        this.gravityAlignment = gravityAlignment and Gravity.HORIZONTAL_GRAVITY_MASK
    }
    private val paddingForDefaultTextSize: Float get() =  defaultTextSizePx * paddingToTextSizeRatio
    private fun getTextScale(currentPaint: Paint) : Float  = currentPaint.textSize / defaultTextSizePx
    private fun getTagWidth(text: CharSequence, start: Int, end: Int, paint: Paint, padding: Float): Float =
            padding + paint.measureText(text, start, end) + padding
    private fun updatePaddingAndShadowLayerRadius(padding: Float) {
        if (tv.shadowRadius != padding) {
            tv.setShadowLayer(padding/* radius */, 0.toFloat(), 0.toFloat(), 0 /* transparent */)
        }
        val paddingI= padding.toInt()
        if (tv.paddingLeft != paddingI && tv.paddingRight != paddingI){
            tv.setPadding(paddingI, paddingI, paddingI, paddingI)
            tv.setLineSpacing(padding, 1.0f)
        }
    }
    override fun drawBackground(
            c: Canvas,
            p: Paint,
            left: Int,
            right: Int,
            top: Int,
            baseline: Int,
            bottom: Int,
            text: CharSequence,
            start: Int,
            end: Int,
            lnum: Int) {
        val paddingForTextSize = paddingForDefaultTextSize * getTextScale(p)
        updatePaddingAndShadowLayerRadius(paddingForTextSize)
        val width = getTagWidth(text, start, end, p, paddingForTextSize)
        val shiftLeft: Float
        val shiftRight: Float
        val fm = p.fontMetrics
        val tagBottom: Float = baseline + fm.descent + paddingForTextSize
        val topPadding = if (lnum == 0 ) paddingForTextSize else 0f
        val tagTop: Float = baseline + fm.ascent - topPadding
        val tagHeight = tagBottom - tagTop
        val radius = tagHeight / 10
        when (gravityAlignment) {
            Gravity.LEFT -> {
                shiftLeft = 0f - paddingForTextSize
                shiftRight = width + shiftLeft
            }
            Gravity.RIGHT -> {
                shiftLeft = right - width + paddingForTextSize
                shiftRight = (right + paddingForTextSize)
            }
            else -> {
                shiftLeft = (right - width) / 2
                shiftRight = right - shiftLeft
            }
        }
        rect.set(shiftLeft, tagTop, shiftRight, tagBottom)
        if (lnum == 0) {
            c.drawRoundRect(rect, radius, radius, paint)
        } else {
            path.reset()
            val difference = width - prevWidth
            val diff = -sign(difference) * (2f * radius).coerceAtMost(abs(difference / 2f)) / 2f
            path.moveTo(
                    prevLeft, prevBottom - radius
            )
            if (gravityAlignment != Gravity.LEFT) {
                path.cubicTo(//1
                        prevLeft, prevBottom - radius,
                        prevLeft, rect.top,
                        prevLeft + diff, rect.top
                )
            } else {
                path.lineTo(prevLeft, prevBottom + radius)
            }
            path.lineTo(
                    rect.left - diff, rect.top
            )
            path.cubicTo(//2
                    rect.left - diff, rect.top,
                    rect.left, rect.top,
                    rect.left, rect.top + radius
            )
            path.lineTo(
                    rect.left, rect.bottom - radius
            )
            path.cubicTo(//3
                    rect.left, rect.bottom - radius,
                    rect.left, rect.bottom,
                    rect.left + radius, rect.bottom
            )
            path.lineTo(
                    rect.right - radius, rect.bottom
            )
            path.cubicTo(//4
                    rect.right - radius, rect.bottom,
                    rect.right, rect.bottom,
                    rect.right, rect.bottom - radius
            )
            path.lineTo(
                    rect.right, rect.top + radius
            )
            if (gravityAlignment != Gravity.RIGHT) {
                path.cubicTo(//5
                        rect.right, rect.top + radius,
                        rect.right, rect.top,
                        rect.right + diff, rect.top
                )
                path.lineTo(
                        prevRight - diff, rect.top
                )
                path.cubicTo(//6
                        prevRight - diff, rect.top,
                        prevRight, rect.top,
                        prevRight, prevBottom - radius
                )
            } else {
                path.lineTo(prevRight, prevBottom - radius)
            }
            path.cubicTo(//7
                    prevRight, prevBottom - radius,
                    prevRight, prevBottom,
                    prevRight - radius, prevBottom
            )
            path.lineTo(
                    prevLeft + radius, prevBottom
            )
            path.cubicTo(//8
                    prevLeft + radius, prevBottom,
                    prevLeft, prevBottom,
                    prevLeft, rect.top - radius
            )
            c.drawPath(path, paintStroke)
        }
        prevWidth = width
        prevLeft = rect.left
        prevRight = rect.right
        prevBottom = rect.bottom
        prevTop = rect.top
    }
}