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Amazon’s testing in-app purchases for its Android Appstore

April 3, 2012 by Kelly Hodgkins - Leave a Comment

USA TODAY launches a Kindle Fire app
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A Bloomberg report suggests Amazon is working on an in-app payment system similar to the one found in iOS and Android. The service is being pilot tested by companies like Skimble Inc which sells a physical fitness app in the Amazon Appstore. According to Skimble co-founder Maria Ly, the service would let them sell workout regimens as an in-app purchase. Other companies would have the option to sell subscriptions.

Amazon would charge a 30 percent commission, which would help boost revenue from its Kindle Fire. Though the 7-inch tablet is selling well, Amazon is not making money off the hardware. Amazon is selling the device almost at cost and is relying on sales of movies, books and other content to generate revenue. These payments could be lucrative for Amazon as estimates suggest in-app purchases will generate $5.6 billion in 2015, up from $970 million last year.

[Bloomberg]

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