W3C home > Mailing lists > Public > public-webpayments@w3.org > December 2014

RE: Apple AppStore revenues - 85%+ come from games

From: Andrew Bovingdon <andy@bango.com>
Date: Thu, 11 Dec 2014 21:25:56 +0000
To: Anders Rundgren <anders.rundgren.net@gmail.com>, Manu Sporny <msporny@digitalbazaar.com>, "public-webpayments@w3.org" <public-webpayments@w3.org>
Message-ID: <B4929E3FA275D64E8FB1C7DD8B3DE4437726F7E0@BANGO-EX1.Westbrooke.bango.net>

Payment experiences for digital goods in app stores tends to be different from payment for physical goods - no delivery addresses, different terms etc. Also there are different payment options typically available. For example, Google Play, Amazon Appstore, Samsung GALAXY Apps, Firefox Marketplace, Windows Phone Store and BlackBerry World all offer carrier billing across a growing number of countries, in addition to credit cards (i.e. everyone except Apple). 

Often carrier billing is the default payment option, removing the requirement for any credit card. The user experience in each case can vary as a result. Credit card obviously requires the entry of the 16 digit number, expiry date and CVV code. Carrier billing often requires no user interaction, other than clicking "buy". This is possible because the carrier billing system (like the one we provide at Bango) automatically authenticates the carrier billing account based on the mobile device and carrier gateways. At worse the user enters their mobile number and confirms with a PIN code sent in an SMS. 

Most app stores have their own proprietary payment experiences, some still depend on native code but increasingly the payment flows use web technologies to render the experience in the local language accounting for local regulations. Using web technologies allows faster deployment without the need to update store clients. Some stores like Firefox Marketplace are completely web based. 
	
Happy to help. 

Andy



-----Original Message-----
From: Anders Rundgren [mailto:anders.rundgren.net@gmail.com] 
Sent: 10 December 2014 08:31
To: Manu Sporny; public-webpayments@w3.org
Subject: Re: Apple AppStore revenues - 85%+ come from games

On 2014-12-10 16:37, Manu Sporny wrote:
> On 12/10/2014 09:47 AM, Stephane Boyera wrote:
>> *i'm not entirely sure i understand how in-app payment is different 
>> to usual checkout apart from the fact that in most cases, 
>> particularly for games, it is micro-payment? you have a product to 
>> buy, the app receive a message the product has been paid, and it is 
>> delivered to the user (digital content)?
>
> You are correct. If we design the system correctly, the flow for an 
> in-app payment will be identical to a retail payment.

Are we talking about hypothetical systems now?  Google's playstore requires that I have a credit-card registered in their system.

That's a very specific way of paying, not applicable to any but super-providers.

Anders

>
>> *I'm not sure i understand in which way the topic (game) has any 
>> impact on the payment part? today 99% of app business model is on 
>> freemium (free+in-app model)
>
> Yep, also true. The industry is a $11B USD/year industry, not nearly 
> as big as the financial services sector, but far bigger than every 
> other "in-app payment" category that exists today combined.
>
> If we are going to do in-app payments correctly, how are we going to 
> know that we did them correctly if we don't have anyone from that 
> industry involved?
>
> -- manu
>
Received on Thursday, 11 December 2014 21:26:26 UTC

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