Glossary · Monetization

What is an in-app purchase (IAP)?

An in-app purchase (IAP) is a payment made inside a mobile or TV app using the app store's own billing system, such as Apple's App Store or Google Play. The store collects the money, keeps a commission and pays the rest to the app's publisher.

How in-app purchases work

The app shows a product, the viewer confirms with the payment method already saved in their store account, and the store sends the app a receipt. The service verifies the receipt on its server and grants access.

Because there is no card form, in-app purchases convert well on phones and televisions. The cost is the store's commission and less direct control over billing and refunds.

Types of in-app purchase

  • Auto-renewable subscription: a plan billed by the store each period
  • Consumable: something used up, such as a pack of coins
  • Non-consumable: a permanent unlock, such as a purchased film
  • Non-renewing subscription: access for a fixed period, such as a season pass

In-app purchase vs web payment

A payment taken on your own website goes through your payment gateway and avoids store commission. Store rules on whether an app may link to web checkout differ by store and region and have changed several times, so check the current rules for each market.

Most services offer both: store billing for viewers who discover them in the app, and web checkout for everyone else. An account bought on the web works in the apps.

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FAQ

In-app purchase, answered.

More definitions in the streaming glossary.

Planning a streaming service?
What does IAP stand for?

IAP stands for in-app purchase.

How much do app stores take from an in-app purchase?

Commission is typically between 15% and 30%, depending on the store, the publisher's size, the product type and the region. Check each store's current terms, as they change.

Can a subscription bought on the web be used in the app?

Yes. The viewer signs in to the app with the same account and the service recognizes the subscription, wherever it was bought.

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