Amazon is reportedly testing a service that lets tablet users make purchases through mobile applications. The service being tested allows both subscriptions and purchases of individual items within apps.
Amazon could use the transactions to get more sales from its Kindle Fire tablet, with in-app purchases expected to generate $5.6 billion in revenue in 2015 up from $970 million last year according to IHS. Amazon plans to charge a 30 percent commission to clients for its in-app purchase service, a similar rate as it charges developers for app sales.
“Amazon needs to be positioned to capitalize on this,” said Brian Blair, an analyst at Wedge Partners Corp. “It’s a smart model. Some of the best new apps in Apple’s app store are free so users can easily download and see the application, but to get any meaningful use, in-app purchases are required.”
Source: Bloomberg
