Apple now permits in-app purchasing

iPhone and iPod Touch application developers will no longer have to provide a "Lite" version to allow people to sample their work for free.

Thanks to a change in Apple's rules, detailed on Engadget, it's now possible to offer a free version which includes an option to upgrade to the full version within the application, similar to the way Xbox Live Arcade games work.

The option can be used "to sell content, subscriptions, and digital services", according to Apple's developer intel.