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Welcome to the Leader’s Blog, the official blog of John and Amanda Fildes, where ideas on innovation, exceptional experiences, competitive differentiation, and business management are shared.

In-app Purchases Now Available in Free iPhone Apps

Posted: February 18, 2010  | Amanda Fildes

Apple has decided to allow in-app purchases from free iPhone apps.  Previously purchases were only allowed from paid apps.  I think this is a good decision on Apple’s part.

It benefits the consumer from a user interface perspective because it eliminates several steps in the process in getting from the decision to buy to actually making a purchase.  It also eliminates the need for users to go back and delete the old app after installing the paid version and having to login to the new app as a new user.  All of that information will be maintained now.

There is benefit to Apple in this scenario as well.  Many users may not even be aware there are paid versions of the apps they enjoy with more features.  By giving users a quick and efficient way to upgrade a free app to the paid version not only informs the customer of its existence but it also helps reduce the chances a customer will abandon an unnecessarily complicated transaction.

I also like the opportunity for opening up payment gateways to third-party transactions in free apps. A good example of this type of app is the Chipotle ordering application that is a free app but allows you to order and pay for your order direct from your iPhone.  I see lifestyle applications like this one really taking off as a result of this expanded opportunity.

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  Amanda Fildes is Executive Director of Metropolis3 Worldwide and consultant to a select portfolio of clients.
 
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