SAN FRANCISCO — Amazon is testing a service that allows tablet users to make purchases through mobile applications, trying to take on Apple and Google in the mobile business, U.S. media reported on Tuesday.
The service being tested allows both subscriptions and purchases within mobile applications, Bloomberg said in a report, citing an app developer in Amazon’s trial.
The world’s largest online retailer has declined to comment.
According to the report, Amazon plans to charge a 30 percent commission to clients for its in-app purchase service, same rate the company charges developers for app sales.
The move will put Amazon more directly at odds with Google and Apple which have been selling items from within downloadable software through their online stores App Store and Google Play.
A lot of apps are free for beginning users to download but in- app purchases are needed to get more advanced use, such as virtual goods and extra features.
Amazon’s Kindle Fire is the most popular non-iPad product in the tablet market, but Amazon only has about 1,400 apps in its store. Both Apple and Google now have more than 450,000 apps available in their stores.
According to business information service IHS, the in-app purchases will generate 5.6 billion U.S. dollars in revenue in 2015, up from 970 million dollars in 2011.
source: interaksyon.com