How in-game purchases pay

The Golden Watering Can

Garden Defense is free. One player loves it so much they want the Golden Watering Can, which makes sprouts grow twice as fast.

Buying items or in-game currency with real money inside a game is an in-app purchase, or IAP. Freemium games earn through them. So how does the money get from the player's phone into our bank account, and how do gems change the picture?

How a purchase works

• 1. Tap "Buy"The player taps the button in our game.
• 2. The store takes overGoogle Play or the App Store opens its own payment window and charges the account. The store is the seller of record, so it also handles sales tax like VAT in many countries.
• 3. The store keeps its shareThis cut is the store's revenue share: 15% to 30% of the price, at the time of writing. The rest is ours.
• 4. UnlockThe store tells our game the payment worked, and we hand over the item.
• 5. PaydayAbout once a month, the store pays our share into the studio's business bank account.

Bolt says: Most games use the store's own payment window, so we never ask players for card details ourselves. In some places, like the US and Europe, apps may now also link to a web shop, but the rules are still changing.

How in-game currency works

In-game currency is game money, like gems. Players buy a gem pack with real money, then spend gems on items. They can often earn some by playing too.

Studios like it because one pack can buy many things. But it has a catch: gems hide the real price. "200 gems" doesn't feel like money, even when it is. And if packs don't match item prices, players end up with leftover gems that nudge them to buy again.

Family controls and refunds

• Ask to buyFamily settings, like Apple's Ask to Buy and Google Play's purchase approvals, send each purchase to a parent to approve.
• A password firstStores can ask for a password or fingerprint before every purchase.
• RefundsA refund is money given back. Each store runs its own refunds (the Launch day lesson in Stage 7 shows who handles what). If it says yes, the money comes back out of our earnings, and the item can be taken away.
• Our own websiteOn our own site, refunds are our job, under our own policy (more in the Refunds, disputes and fraud lesson).

Our fair design rules

• Real-money pricesShow "$2.99", not just "400 gems", and sell packs that match item prices. Players should always know what they really pay.
• No fake countdownsNo "Only 5 minutes left!" timers that secretly restart. That is pressure, not a deal.
• No paid loot boxesA random prize you pay for works like gambling. Some countries limit them. Not in a game kids play.
• Fun without payingFree players can still finish and enjoy the game.

Next: one pass for a whole season

Now we know how in-game purchases work, where the money goes, and how to keep the shop fair. Many live games bundle their rewards into one seasonal purchase instead: a ladder of prizes players climb by playing.

Bolt says: Next lesson: battle passes and season passes, and how to make one fair.