Amazon tests service that would allow Kindle users to purchase items via a mobile app; by 2015, in-app purchases will generate revenue of US$5.6B, up from US$970M in 2011, says researcher

Cindy Allen

LOS ANGELES , April 3, 2012 (Industry Intelligence) – Amazon Inc. has begun testing a service that would allow Kindle users to purchase items via a mobile application, Bloomberg reported April 2.

Skimble Inc. co-founder Maria Ly said that the service currently being tested would permit people with and without a subscription to make in-app purchases. Ly’s company, which sells physical fitness programs, has been involved in the testing process for approximately a month.

A majority of Skimble’s sales are generated via in-app purchases and subscriptions, said Ly. The company is interested in the Kindle Fire market, but needs to be able to access payment methods for these types of transactions.

Skimble sells individual workout programs for an average of US$9.99, while a three-month membership costs $24.99. Ly indicated that both packages would be offered via Amazon’s upcoming in-app purchasing service.

For clients using its in-app purchasing service, Amazon intends to charge a commission rate of 30%, which is the same rate that developers are charged for app sales, Ly added.

Amazon spokesperson Kinley Pearsall did not respond to a request for a comment.

IHS predicts that, by 2015, in-app purchases will generate revenue of $5.6 billion, up from $970 million in 2011.

The primary source of this article is Bloomberg, New York, New York, April 2, 2012.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.