Content of this article
- What are In-App Purchases (IAP)
- Different Types of IAP
1. What are In-App Purchases (IAP)
In-App Purchases refer to purchases that are made by someone within an app, usually on a mobile phone or tablet. IAP can differ from app category to app category. Common examples are:
- Selling single products, such as time passes, files or access to a stream
- Selling subscriptions for tracking and advertising freedom within the app
- Selling comprehensive subscriptions with various service areas
IAP make it possible to offer an app free of charge and to generate revenue through paid functions and products once the app has been installed.
2. Different Types of IAP
Generally speaking, there are four types of IAP.
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Auto-renewable subscriptions
With this model, users are charged recurring fees for access to content, services or additional functions within an app. Users are automatically charged for each service period until the subscription is canceled.
Example: an automatic monthly subscription for a streaming platform
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Non-renewable subscriptions
In contrast, a non-renewable subscription is not automatically renewed. With this model, services or content are only provided for a limited period of time. If users want to continue to have access, they must take out a new subscription as soon as the current subscription expires.
Example: a one-time 6-month subscription for accessing digital articles of a magazine
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Consumable products
Consumable products are consumed when the user uses them. If a corresponding product is used up, the user must purchase the product again.Example: credits for participation in live webinars
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Non-consumable products
Non-consumable products are permanently available to the customer. These products do not expire with time or use.Example: special edition of a magazine as a PDF file