PayPal Spearheading In-App Purchasing

Wed, Apr 28, 2010

Android, iPad, iPhone, Mobile

PayPal, the probable leader in many online purchasing stores, is taking on a new, mostly un-tapped market in “In-App Purchases” in which extra, add-on content is purchased from the app itself, rather than the App Store or Android Market. PayPal announced the new venture in a small, informal announcement on Monday. They also have already received approval from Apple and Google to begin the project.

The details are few, but according to Benelux Country Manager Dennis  van Allermeersch of PayPal: “We have found a way, Apple is OK with it.” On Android, the service will compete with Google Checkout for the same purpose and is surprising to some but not so much if you consider the openness of the platform.

Apparently, Apple approved the service because it compliments the current virtual in-app purchasing system and provides tools that Apple currently doesn’t. The new feature on the iPhone is being called “iPhone Library” and at the moment only allows for physical goods.

PayPal describes the new project in greater detail:

“With our iPhone library, you’ll be able to start accepting payments for physical goods and services in a matter of minutes. Whether you’re looking to replicate a storefront you have online or you’re making something unique for the mobile device, this library can help you get paid. You won’t need to collect financial information or make users go to your website to complete a purchase. With our library, we’ll take care of the payment flow and you can keep focusing on making those great apps. Here’s how it will work. You’ll call a method to tell us how much you want to charge and who the money should go to. We’ll then slide up a view for the consumer to confirm the payment. When it’s complete, we’ll slide this back down.”

While not currently available, the In-App purchasing service will be available in the US, Canada, UK, France, Italy, The Netherlands and Australia sometime in Q2.

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Talor is a Contributing Editor at Frisky Mongoose focusing on the mobile side of the social gaming world.

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  • PhilipCohen

    Visa and its banking partners prepare to eat PayPal alive—at last!

    It is with great sorrow that “Dr Death” Donahoe MBA (aka Peter Principle), resident witch doctor at eBay, is expected to announce the expected imminent demise of eBay’s most ugly daughter, PayPal. The market is advised that it is feared that PayPal is about to be stricken by a particularly virulent strain of Visa accompanied by financial institutions complications. If so stricken, PayPal is then expected to deteriorate rapidly and, if ultimately not completely incapacitated, will most likely be eventually confined to what little is by then left of the Donahoe-devastated eBay Marketplaces. Dr Death said he was particularly saddened by the inevitable presumption that it is unlikely PayPal will be able to continue to underpin eBay’s bottom line into the future. A detailed examination and prognosis of the patient at

    eBay/PayPal/Donahoe: Dead Men Walking

  • Talor Berthelson

    Very interesting topic. Thanks for the link!