In my opinion this app amounts to little more than exploitation. iFlyJobs appear to be purposely targeting individuals desperate for their first job.
For a relatively basic mobile application it is unnecessarily expensive. Regardless of how they might defend it, the cost to spec, develop, test and roll-out an iPhone/Android app similar to this are not astronomical.
A genuine recruiter should be able to recoup these costs via a cut from successful applicants. A cynic might suggest that by charging so much for an app, they are in effect admitting a lack of confidence in achieving any real return via traditional client fees. If the agency doesn't hold much hope of their candidates gaining employment, what does this say to you? The bottom line is that this breaks the golden rule - a recruiter should be paid for by their client, not by the job-seeker.
'Lucy' is probably a man, and should this take off he'll be set to be a far wealthier one too. Personally, I'd avoid it like the plague.