# In-app purchase (IAP)

A purchase of digital content, access or features made through an app's purchase flow.

A purchase of digital content, access or features made through an app's purchase flow.

## An example

A language app sells an extra practice pack inside the app.

## Why it matters

Revenue reporting should distinguish gross purchases, refunds, fees and recognized revenue.


## Related terms
- [Active user](https://jolts.xyz/resources/glossary/active-user)
- [Cohort](https://jolts.xyz/resources/glossary/cohort)
- [Lifetime value (LTV)](https://jolts.xyz/resources/glossary/lifetime-value)
- [Retention rate](https://jolts.xyz/resources/glossary/retention-rate)

## Next step

[Explore advertising](https://jolts.xyz/advertisers) or [monetize your AI app](https://jolts.xyz/publishers).