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Amazon To Start In-App Purchases, Threatening Google And Apple

Amazon is testing a service that allows subscriptions and purchases through apps. The world's largest online retailer is just getting started - but the Seattle-based company has potential to generate revenue from this market, according to a recent Bloomberg report.

Maria Ly, co-founder of Skimble Inc, a company involved in testing Amazon's upcoming service, points out that the first target will be the users of Amazon's most popular device.

"We really wanted to attack the Kindle Fire market, but also have access to the payment methods that support our business," detailed Maria Ly.

She also pointed out that the service is still in its early stage, but the companies involved are very optimistic about Amazon's initiative.

Skimble hopes to expand its client base with Amazon's help. In-app purchases will generate more revenue in the coming years, as it is perceived to be a market in full expansion.

A recent report from IHS reveals that last year, this method of allowing users to go shopping from the downloaded software, brought in revenue of $970 million. The years ahead could see the revenue from in-app purchases to multiply, and reach up to $5.6 billion by 2015.

Source: Bloomberg (opens in new tab)

Radu is the founder of, and has worked as a freelance writer for ITProPortal, as well as having been blogging around since 2004. He is interested in anything Apple as well as gaming and mobile applications.