Implementing In App purchases in Android?

Edit: Android now supports in-app billing!

Original question:

It looks like Android won't natively support in-app purchases for a while, and when it does there might be a huge user base with devices that don't support them.

What's the best way to implement iPhone-like (additional content or services) in-app purchases in Android using the Android Market if possible?

The solution should consider in particular:

For all kinds of in-app purchases: Android Market's 24-hour cancellation policy
For consumables/non-consumables: storage of additional content (ie: use precious application memory to avoid piracy, or use SD card to avoid bloating application memory)

Thanks!

Solution

This has changed as of today! There is now an example on the Android Developer site here: https://developer.android.com/google/play/billing/billing_overview