What is Receipt validation?
Receipt validation involves verifying the authenticity of a purchase made within an app directly with the app store (such as Google Play or Apple's App Store) from which it was downloaded. This process confirms that the transaction was completed successfully and is valid. By implementing receipt validation, developers and marketers can ensure that the data they collect on in-app purchases reflects genuine user transactions, thereby maintaining the integrity of their financial and analytical data.
How Does Receipt validation Work?
The process can be done locally, but a server-to-server process with the App Store is also widely used follows these steps:
- Transaction Occurrence: When a user completes an in-app purchase, the App Store generates a digital receipt.
- Receipt Transmission: This receipt is then sent from the user's device to the app server or a third-party validation service like that of a Mobile measurement partner (MMP) like Airbridge.
- Verification Request: The app server forwards the receipt to the App Store's verification service via an API call.
- Validation: The App Store checks the receipt's authenticity, including the transaction details like purchase date, item purchased, and amount paid, and users’ information.
- Confirmation: Once verified, the App Store sends a confirmation back to the app server, affirming the transaction's legitimacy.
- Data Recording: The transaction is then officially logged, and any corresponding in-app content or features are unlocked for the user.
This is a real-life example, to which you can refer. A user makes a purchase on an e-commerce platform. After completing the transaction, a receipt is generated and sent to the App Store. The e-commerce platform will then cross-verify these details with their database, matching the product ID, quantity, customer details, and payment info. If everything matches, the receipt is validated.
Why Is Receipt validation Important?
Receipt validation is essential for preventing fraud, facilitating seamless transactions and in-app events within the mobile environment. Moreover, Receipt Validation is closely related to other crucial metrics like conversion rates, customer lifetime value (LTV), and churn rate, all contributing to your final advertising performance. Besides, you should also keep in mind these values that Receipt Validation has:
- Fraud Prevention: It helps prevent fraud by ensuring that only valid, verified purchases are recognized and rewarded in the app. This is crucial in combating fake transactions that could otherwise inflate revenue figures or deplete resources through the provision of services or goods that weren't actually paid for.
- Accurate Revenue Tracking: For performance marketing, accurate data on in-app purchases is vital. Receipt validation ensures that financial reporting is based on verified transactions, leading to more reliable financial insights and decision-making.
- Enhanced User Trust: By ensuring that purchases are processed and validated correctly, developers build trust with their users. A secure and reliable transaction process encourages more in-app purchases and improves overall user satisfaction.
- Compliance and Reporting: In some cases, receipt validation is essential for compliance with app store policies or financial regulations. It also supports accurate reporting for accounting and tax purposes.
