Amazon, following the lead of Apple and Google, on Tuesday announced that it will begin letting users make purchases within the apps offered via its Appstore.
The new in-app purchasing service allows developers to charge for digital content, such as upgrades, expansion packs, in-game currency, and magazine issues. With the new service, users of the Kindle Fire and other Android devices will be able to purchase in-app content with just one click.
A number of developers and publishers have already begun taking advantage of the capability, including Walt Disney Co., Gameloft, Conde Nast, Dow Jones, and the New York Post. Report about in-app purchases first surfaced earlier this month; Amazon has been testing the service since November.
"Amazon Appstore's In-App Purchasing service enables developers to generate more revenue from their apps," Aaron Rubenson, director of the Amazon Appstore, said in a statement. "Many of Amazon Appstore's customers have shopped with Amazon before and they trust Amazon's easy payment process, which leads to higher conversion of developers' in-app content and subscriptions."
With the new capability, developers could be more inclined to write software for Amazon's Appstore, Bloomberg Businessweek pointed out. This is important because Amazon currently has about 34,000 apps in its Appstore, while Google Play has 450,000 and the Apple App Store has at least 500,000. It's also a win for Amazon because the online retailer keeps a 30 percent cut of every in-app purchase.
In-app purchases are expected to generate $5.6 billion in revenue by 2015, up from $970 last year, according to January stats from market research firm IHS iSuppli. IHS predicts that soon, the dominant app monetization strategy will be to offer apps for free and charges for in-app content.
Google added in-app billing for Android apps in March 2011. In-app purchases have been available via Apple's App Store since October 2009 and via BlackBerry App World since September 2010.