In-app payments now available for free iPhone apps

Last Thursday, Apple announced that in-app microtransactions will be extended to free iPhone and iPod touch applications, enabling developers to sell content, subscriptions and digital services without requiring consumers to spend any money upfront.   This was previously only possible in premium apps.

In an email to registered iPhone developers, Apple said: “You can also simplify your development by creating a single version of your app that uses In App Purchase to unlock additional functionality, eliminating the need to create Lite versions of your app” .

Developers can market new levels in an iPhone game, additional chapters or books in an ebook app or new tools in productivity apps. However, that meant pricing apps at a minimum of 99 cents. The revised policy should make it easier for developers to build profitable businesses out of free applications, and also promises to clean up the App Store by making Lite apps redundant.

More at Wall Street Journal.

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