What is In-App Purchasing? And How You can use it to Monetize Your App?

What is In-App Purchasing? And How You can use it to Monetize Your App?

The world is swayed by the usage of smartphones today and when it comes to smartphones it is more than just calling or messaging – it is about installing and using an array of applications.

People install certain worthwhile apps that fulfill their needs whether it’s entertainment, education, or shopping. Also, there are certain apps that provide regular and premium content on the same platform. While regular content, features, or functions can be accessed free of cost, premium ones need to be unlocked via in-app purchases. Ecommerce websites let you purchase physical commodities online, so it is safe to say that even goods can be purchased via in-app purchasing.

For people who are willing to own a full-fledged mobile application, the article deals with everything you need to know about the in-app purchase, its benefits, and how you can boost your in-app purchase to earn maximum profits.

What is in-app purchasing?

While the app installation is free, the in-app purchase feature lets you buy features, functions, and even goods by paying a minimum amount on the app. There are in-built options to process payments with the help of which you can buy anything the application has to offer.

In-app purchasing utility has proven to be a boon for e-commerce, media, and entertainment channels. The app service providers let the user access the basics of the app for free. From physical commodities to movies, shows, and premium features, everything can be purchased via in-built purchase features.

What is In-App Purchasing

Types of in-app purchases

You open the gateway to several exotic features and services via in-app purchases. It can be a video content platform (Netflix) or an e-commerce app (Amazon or Flipkart), you can easily purchase goods, services, premium content, online games, and other commercial services by paying at their in-built check-outs.

Items offered via in-app purchase are segregated into 4 categories. Let’s explore.

1. Consumables

As the name has it, consumables can be purchased for a single time and will vanish after one time of use. You can re-purchase them as and when you want them again.

For instance, in gaming applications, apps are free to install and play to a certain level. As the level goes up you need to purchase the premium features/virtual coins to break through and pass the quests. These features/coins can be used for a single time.

2. Non-consumables

Non-consumable purchases are here to remain with you as long as you are using the application. Once unlocked you can anytime use these purchased features, services, or functionalities and their benefits are permanent. The non-consumables are associated with your account (no matter which device you use). 

For instance, a cooking application – once you purchase the recipe of a dish, it will be visible on your smartphone every time you access the app. Though to unlock others you might need to purchase them.

3. Auto-renewable

The one-time paid subscription renews itself on a weekly, monthly, or yearly basis. A specific amount from your given bank account will automatically be deducted after the specific time (month or year). You can unsubscribe anytime you want and the app will stop showing you the subscribed features. For instance, the monthly newspaper subscription or magazine issues or weekly subscriptions, dating app subscriptions, etc.

4. Non-Renewable

The subscription stays for a definite period and then again asks for the charge once the time limit is over. For instance, on Netflix, you can get a monthly subscription of the content by paying a certain amount to the app. As the next month starts, the app asks you to pay for a monthly subscription and you have to again give the charges to renew your subscription.

Benefits of In-App Purchases

Benefits of In-App Purchases

(image credits: SensorTowers)

1. Less Time Consumption

There are certain worthwhile apps you use to get your work done like the stock market or mutual fund apps, you can’t risk it with basic functions as it might take time and you might lose a brilliant deal. In-app purchase of premium functions comes to your rescue at this time. Get your work done right and without any delay.

2. Saves Efforts

If it is to be done, it is to be done right. Gaming app is the platform where you put in all your efforts to ace and are get rewarded with the next level. Now that you need some premium features that will help you conquer the first quest and move to the second really quickly, then you will definitely want to opt for it.

3. Authorized Online Transactions

The in-app purchase mechanism lets you purchase the content, goods, features, and functions online without any delay. These payments are authorized and are secured by a robust back-end mechanism. 

The app development agencies are here to ensure that you have a secured and robust in-app purchase mechanism.

How Can You Boost Your In-App Purchases?

1. Bonanzas and Special Offers

Promote your premium services with special offers and bonanzas. If the user has downloaded your app that means he was looking for a similar service. This is the best for eCommerce sales. Based on their previous searches, let them know the current offers, seasons end sales, discounts, etc. Also, a service app can go with cashback, 50% of, etc. to boost their in-app purchases. These offers attract users to download your app.

2. Create Loud Resonance

Many are concerned that they are not missing out on something happening. Social media plays a critical role here, people are highly influenced by posts, videos, and captions. If you have an in-app purchase utility, market it on social media and create a hype of your premium content, features, or functionality.

3. Push Notifications

Push Notification is the best way to communicate and also make your current users aware of your premium services. Push notifications are always paid attention to by the users and they are will give it a go if your premium service appeals to them. Be modest with this utility as frequent notifications might annoy the users. Bothered by frequent notifications, your current users might uninstall the application which is the last thing you want.

4. Loyalty Programs

Honesty and loyalty are the basis of a long-term business relationship. Introduce loyalty programs to encourage your user to purchase more from your app. This helps you enhance your brand’s goodwill and in turn, will help your clients stick to your brand whenever they are looking for similar products.

5. Enhance User-Experience

Once the user has purchased from you his expectations from your app increase. He is surely looking for what word you gave him at the time of promoting your in-app premium features. Enhanced features with better performance will make him your loyal customer and your advocate when it comes to recommending your app to their friend circle. User experience is the best when it is unhindered by any external ads. Stop the ads intervene once your user has subscribed to any of your premium packs.   


In-app purchasing proves to be the best revenue model if you have a premium service, function, or commodity to sell. If your users are once satisfied with the purchase they will surely stick with it for the rest of their lives. Holding an experience of years, professional app developers can guide you with how you can implement this amazing utility in your app. Also, they will guide you with the mobile marketing and enhancement of your services so that more and more users are attracted and buy from you. 

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