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Reading around I can see that Android Market doesn't yet support Gift tokens or similar, and while Amazon's Android market does, its only available in the USA. So the question is, what sort of workarounds are there for this?

For example, could I log in to android market from the recipients phone with my google credentials, buy and then download the application, then logout again? Would the application still work? Can I pay with my credit card with the other persons Google wallet? Is this consistent with the usage policy of the Android market? What other options might I have?

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For some apps, you could buy it on your account, then give them the APK, but this won't work for all apps, as many of them contact the market to make sure they've been paid for. That also might not be entirely legal. At the moment, I think the only option you really have is just to give them the money to buy it.

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Apps are tied to the account; so while the app may work they wouldn't be able to get it back if they uninstalled it, reset the phone, etc. There is no simple, good way to do what you want currently.

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