Apps like Tinder, Strava, Zoom use this approach. It is very successful in the modern world.
Social media sites and game apps are best at this.
Not many apps require you to pay before downloading in the modern world, but companies like Netflix have done well out of offering a “free app” but you only get the content if you pay.
Companies are starting to see a good ROI by building a mobile app as a successful way to increase their marketing and brand awareness.