In-app billing refers to in-app purchases that are made directly from within a mobile application on Google’s Android platform. With in-app billing, Android users are able to purchase additional content or features such as bonus levels, virtual money, power-ups or boosts, special characters and more from within the app itself.
Google facilitates the purchase for users and takes a 30% cut of the money spent on the in-app billing purchase, with the rest going to the developer of the app. Google added in-app billing support in March 2011.