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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMobile & App MarketingIn-App Purchase (IAP)

Mobile & App Marketing

In-App Purchase (IAP)

Buying digital goods, upgrades, or subscriptions within an app, usually processed through the Apple App Store or Google Play billing.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

An in-app purchase (IAP) is a transaction to buy digital goods, upgrades, currency or subscriptions inside a mobile app. Payments are usually processed through Apple App Store or Google Play billing, which take a commission, commonly 15 to 30 percent. IAP is the main revenue model for free-to-download games and many consumer apps.