Definition of in-app purchase

An in-app purchase (IAP) refers to the buying of virtual goods, services, or additional features within a mobile application. This monetization strategy is common in freemium apps, where the initial download is free, but users can make purchases within the app.

Explanation of in-app purchase

In-app purchases can include upgrades, premium content, virtual currency, or other items that enhance the user experience or provide added functionality.

Example of in-app purchase

Buying virtual gems, coins, or a premium subscription within a gaming app to unlock new levels or features.

Strategies of in-app purchase

• Value proposition: Offer compelling and valuable in-app purchases to motivate users to spend.
• Transparent pricing: Clearly communicate the benefits of purchases and their associated costs.
• Limited-time offers: Implement time-limited promotions to encourage immediate purchases.

Related terms

• Monetization
• Freemium
• Virtual goods
• App store