What are in-app purchases (IAP)?
In-app purchases refer to purchases that someone makes within a mobile app, usually on a mobile device such as a smartphone or tablet. IAPs can vary greatly from app category to app category. Common examples are:
Sale of individual products such as time passes, files or access to a stream
Sale of a subscription for tracking and advertising freedom within the app
Sale of a comprehensive subscription with various service areas
IAPs make it possible to offer an app free of charge and to generate revenue through paid functions and products once the app has been installed.
Various IAPs
In general, IAPs can be divided into four types.
Auto-renewable subscriptions
With this model, users are charged recurring fees for access to content, services or additional functions within an app. Users are automatically charged for each service period until the subscription is canceled.
Examples: An automatic monthly subscription to a streaming platform.Non-renewable subscriptions
In contrast, a subscription with a fixed term is not automatically renewed. In this model, services or content are only provided for a limited period of time. If users wish to continue to have access, they must take out a new subscription as soon as their current subscription expires.
Example: A one-off 6-month subscription for access to digital articles in a magazine.Consumable products
Individual products are consumed when the user uses them. If a corresponding product is used up, the user must purchase the product again.
Example: Credits for participation in live webinarsNon-consumable products
Non-consumable individual products are permanently available to the customer. These products do not expire with time or use.
Example: Special edition of a magazine as a PDF file