Apple is extending the ability to run micro-transactions to free apps, reports Macworld.  Currently only paid apps can run money transactions in the software linked to Apple iTunes App Store.

Rob Griffiths of Macworld sees the first key development being that Apple developers can now process game purchases from inside their free demos.  Apple’s restriction had forced people who play free demo versions of software to return to the App Store and purchase the full version as a separate product.  Griffiths predicts the end of iPhone’s free demo  lite apps altogether, with developers now able to roll out a single app that runs a free demo and can activate the paid version.  A welcome byproduct of the change will be eliminating double listings that clutter the App Store, where any product with a free demo is listed twice.

Eventually developers are expected to start rolling out subscription based products, and look to use the free-to-play model taking hold on PC.

Read more at Macworld.