One of the ways developers can get you to shell out more cash is through in-app purchasing. This feature allows you to try a free version of a game, for example, then be able to instantly upgrade to the premium pay version just as you’re getting immersed in the title and want to play further levels. Currently BlackBerry and iOS support this feature, but Android does not. Sure, there is PayPal Mobile Payments, but the functionality is not native to Android.
It looks like Google has in-app payments on its radar and is looking to release the feature soon, possibly with the next version of Android that we know as Gingerbread. This feature would probably rank high on their priority list, as it could increase revenues for developers and thus drive more app development. In a recent New York Times article, Google briefly commented on this feature:
Google says it hopes to introduce a transaction feature for Android software that will allow purchases within apps, to help developers make more money.
In-app purchasing, while good for developers, is also good for end-users. It improves workflow by not pulling you out of the app and back to the Market in order to purchase an upgrade.