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I have installed the free version of an app on my phone from Google Play. Now I want to purchase the full version of that application using in-app billing or purchase option already available in that application.

I don't have a credit card, but I have already purchased Google Play gift cards, and I want to pay for the in-app purchase with a gift card.

Is this possible, and if so, how?

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    I think there is an easier way... Why don't you go to the Google Play Store, and Redeem the gift card and than use in-app purchase? – FiN Aug 31 '15 at 6:41
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It is possible

just click through the in app purchase dialog and there will be a "redeem" button. if you click it, you can simply enter your code and that's it.

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