Bloomberg is reporting Tuesday morning that Amazon is testing a service that will allow tablet users to make purchases through mobile applications.
This is the latest clue that the online retail giant wants to step up competition with the likes of Google and Apple, two companies for which in-app purchases are old hat.
Sources familiar with the development say the service being tested allows both subscriptions and purchases of individual items within apps.
For Amazon, the move makes tremendous sense. As Bloomberg speculates, “Amazon could use the transactions to wring more sales from its Kindle Fire tablet and the widening array of applications that can be downloaded to the device.”
IHS estimates that in-app purchases will generate $5.6 billion in revenue in 2015.
Maria Ly, co-founder of Skimble Inc., tells Bloomberg that she has been involved in Amazon’s pilot since March.
“It’s still kind of in its early stages,” Ly admitted this week. “But we’re very optimistic about it.”