Amazon offers in-app payments
By Hayley Tsukayama,
Amazon announced Tuesday that it will accept in-app payments from its online marketplace, a move to compete more closely with the app stores from Apple and Google.
The move should help Amazon generate more revenue from individual apps by making it incredibly easy for users to purchase additional levels, features or other items from the apps they’ve downloaded onto their Kindle Fire or other Android devices.
Amazon, of course, will also get a cut of the profits — 30 percent from every in-app purchase.
The company is pitching the new feature to developers, who may be dissatisfied with how Apple controls its App Store or may simply be looking to branch out. Aaron Rubenson, the director of the Amazon Appstore said, “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.”
The move will likely help the Kindle Fire, Amazon’s 7-inch tablet, which could use more content from developers to boost its already impressive sales. If developers get more regular income from expansion packs or subscriptions purchased in the applications, porting applications to the Fire could be very tempting. According to a report from Bloomberg, at least one analyst believes that Amazon turns a profit of around $136 on each $199 Kindle thanks to content downloads. That’s not bad, especially when one considers that the company is said to lose about $3 on the production of each tablet.
There are rumors that Amazon will soon be releasing more tablets — a line of four this year, according to Venture Beat — which are expected to have larger screens and more varied price points.
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