I have an application that comes bundled with some content(say image, songs etc.). We want to have an in-app store, so that the user can buy contents and extend the experience. What are the different ways in which the above mentioned can be achieved?

iPhone has Storekit framework that enables in-app purchases. So, our requirements wants us to follow the suit.

Also, according to Android Markets(AM) distribution agreement, an Android application published via AM, is not allowed to accept payments from any Payment collectors other than the one Market provides and/or Google checkout.

We have decided to integrate Paypal, now that they have published Mobile Payments Library to Android developers. If we do so, can we publish our application on Android Market?