Glossary · Pricing & billing

What is in-app billing?

In-app billing is the payment system that an app store, such as Apple's App Store, Google Play or the Amazon Appstore, provides for buying digital goods inside apps. It charges the payment method on the user's store account and manages renewals, refunds and cancellations for subscriptions bought that way.

How in-app billing works

Products and prices are defined in the store's console. When a viewer buys, the store takes payment and gives the app a signed receipt. The service validates the receipt with the store and grants access.

For subscriptions, the store charges each renewal itself and sends the service a notification when a subscription renews, lapses, is refunded or is cancelled.

What the store controls

  • The checkout screen and the payment methods offered
  • Renewal dates, retries of failed payments and grace periods
  • Refunds, which the customer requests from the store
  • Cancellation, done in the store's subscription settings
  • Price points available in each country

Running store and web billing together

A service usually has subscribers from several sources: its website, Apple, Google and perhaps a TV store. The account system must treat all of them as one kind of entitlement, so a viewer who subscribed on an iPhone can watch on the web and on a television.

Reporting needs the same care. Revenue from stores arrives net of commission and on the store's payout schedule, so combine it with web revenue before reading totals.

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FAQ

In-app billing, answered.

More definitions in the streaming glossary.

Planning a streaming service?
Is in-app billing the same as an in-app purchase?

In-app billing is the system. An in-app purchase is a single transaction made through it.

Can I refund a subscriber who paid through an app store?

Not directly. The store is the seller, so the customer requests the refund from the store.

Is in-app billing mandatory?

Store rules on this differ by store, app category and country, and have changed several times. Check the current policy for each store and market before deciding.

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