The iMafia game for iPhone is not only the first app with an approved, in-game microtransaction system, but that system also doubles as a platform to promote and purchase other iPhone apps.

The system, developed by PlayMesh, basically allows you to buy additional premium content for the MMO-esque game, where you point and click your way through life as a kingpin, but it also packages games from outside developers in with the premium content. In this case, you’re essentially receiving points to “level up” everytime you buy an app inside iMafia.

What this means for you, is that if PlayMesh’s model catches on in iPhone app development, you could be seeing alot more “premium apps” being sold for zero dollars. Here’s why:

First, they’ve found a way to monetize free apps without resorting to advertising. Companies can profit by selling in-game bonus material. Apple still gets their usual cut of the profit, from any apps sold within iMafia, but then PlayMesh will take an additional (still undisclosed) cut from those developers working with them.

Second, they’ve developed a way to promote and distribute apps outside the App Store, which gives new developers a chance to get their foot in the door against the already-established “popular apps.” So if you’re an up and comer in the iPhone developing world, you can basically pay for extra promotion.
That said, all apps still have to go through the usual approval process.

According to founder Charles Ju, in the two days this system has been live, iMafia has pushed two games into the top 100 of overall paid iPhone games. iMafia, which is free, currently ranks seventh among the iPhone’s most popular games.