No unless you Jailbreak it and there are stuff like the 4th software update
iPod software is updated by plugging the iPod into the computer and using Apple iTunes software to upgrade.
You do not pay to update your iPod Touch unless the software update is to 3.0 or 3.1.
settings
To get the iPod Touch 3.0 software, go to iTunes and search for the software, and you can buy the software for $9.99.
you update it through itunes
iOS 6 is the software that was launched with the iPhone 5. You can run this software version on an iPod Touch (4th or 5th gen), any iPad except the original, and the iPhone 3GS, 4, 4S, and 5. You have only this summer to update to it if your device is eligible for an update to iOS 7 coming this fall. If you are running iOS 5, you can update to it from Settings>General>Software Update. If you are running any older iOS, you must plug your device into an iTunes-authorized computer to update. The update is entirely free by the way. You can see more about what features it brings on Apple's website.
If you have an iPod Touch 3rd generation, you can easily update to iOS 5.1.1 by plugging in your device to your iTunes-authorized computer and waiting for the pop up to download and update to the new software. If you are already running an earlier version of iOS 5, you can update wirelessly by going into Settings>General>Software Update. If you have a 4th generation iPod Touch, then you must update to iOS 6 because you are always forced to update to the latest iOS version available. I you have a 5th generation, you cannot downgrade to iOS 5.1 because that is not legally allowed by Apple and requires hacks.
The 3.1 software is an update to the 3.0 software for the iPod Touch. The 3.1 software mostly adds the ability to have Genius look for good songs for you directly from your iPod Touch.
You can update your 4th gen iPod Touch to iOS 6 in two ways. If you are on iOS 5, you can do it wirelessly from Settings>General>Software Update. If are running iOS 4, you have to plug your device into an iTunes-authorized computer and accept the pop-up to download and install the latest iOS software. Either way, there will be waiting involved, especially if you have a slow connection.
depends are you on latest software?
Updating the iPod Touch software erases the jailbreak. You can update, but it will erase your jailbreak.
This means you have to update your software on your iPod Touch. You have too old of a software to run the apps (you are possibly running the 1.0 software). Upgrade to at least the highest upgrade of 2.0 software.