Niche for now, but Bango forecasts sector will grow of 600 per cent in 2011.
As one of the longest-established payments firms in mobile, Bango has excellent perspective on trends in the space.
It explains that expectations for in-app payments are high, with the freemium/micro-charging model being so prevalent among mobile content firms.
But that five per cent figure is probably smaller than most would have predicted.
Bango lays some blame with the app stores’ technical limitations. Most don’t offer the functionality, although this is changing.
For example, RIM announced in September in-app billing support in early 2011.
With this in mind, Bango forecasts that for 2011 in-app charging will grow over 600 per cent to account for close to 30 per cent of all mobile app payments.
It adds that in-app payment models are starting to appear, and cites Touchnote as an example. It uses Bango’s in-app billing solution to charge users for generating and sending post cards via a free app.
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