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Common marketing terms
Learn about in-app purchases (IAP)
In-app purchases (IAP) refer to the ability to purchase goods and services within apps, which can range from premium features and ad-free experiences to virtual currency and exclusive content. This concept has rapidly gained popularity in recent years, and IAP revenue is estimated to account for approximately 48.2% of total mobile application revenue .
Learn more: What are In-App Advertising (IAA) and App Store Optimization (ASO) ?
How in-app purchases (IAP) work
When developers implement IAP, they set up their applications afghanistan mobile phone number list to use the app store's IAP API. This API allows them to create and manage purchasable items within the app. The whole process usually includes the following steps:
Developers define IAP items, including price and description.
A user initiates a purchase within the app.
The app displays a payment interface, usually provided by the app store's payment gateway.
After the transaction is completed, the app store will deduct a certain handling fee (usually 15-30%), and the remaining amount will be deposited into the developer's account.
Types of In-App Purchases (IAP)
Developers can implement the following types of IAP:
Consumable items: These are single-use items that can be purchased again, such as in-game currency or power-ups.
Non-consumable items: These are permanent features or content that a user purchases once and keeps forever, such as an ad-free version of an app or extra levels in a game.
Subscription: This type of IAP provides access to content or services for a specific period, usually with an auto-renewal option.