Ericsson has launched an in-app payment service, based on its IPX service platform, which is integrated with over 120 carriers. With in-app payment, a consumer in a game or other application can complete a purchase with one click, without leaving the app, and with no need for a credit card.
“People are spending increasing amounts of time and money on applications,” notes Adam Kerr, head of Ericsson’s mCommerce business. “Research firm Ovum projects that revenues from paid mobile apps will top $3.7bn (£2.3bn) in 2011, and expects this to increase to $7.7bn in 2016. In order to reach these kinds of numbers it’s got to be easy for the consumer.”
In-app payment opens applications to more buyers, and allows retailers to offer a range of payment models, including try-before-you-buy, rental and subscription models. The model can be applied to game levels, maps, and digital content such as music, books and other in-app assets. For very small payments, a virtual currency can be used.
For the app developer or content provider, the flexibility of wrapper technology and an SDK (Software Development Kit) make it easy to offer alternative payment methods within their apps. The in-app service also adjusts automatically to the many different technical payment options used by mobile networks globally, making it easier for developers to retail applications over networks in many different countries.