What are in-app purchases?

In-app purchases (IAP) occur when a user purchases an item in an app or game with real money. Some examples of what users purchase can be: an extra life, an upgrade to speed up a task, cosmetic items for a character, or hints for a puzzle. This is a way for publishers to generate revenue and can often be used in lieu of, or in addition to, in-app advertising. 

How do in-app purchases work?

In-app purchases can be offered to users at any time, and some games specifically wait for a turning point in a game when players are in need of assistance to move on to the next level. In-app purchases generate revenue for the publishers, and players get additional value from their app or game.

Learn more about how developers make money from our App Hacks video, What is Hybrid Monetization?