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Tuesday, February 5, 2013

Amazon is planning to launch its own virtual currency

Amazon.com is launching its own virtual currency in May, although at the moment it’s only being offered to Kindle Fire owners in the USA. It’ll be possible to use the ‘Amazon Coins’ currency for buying applications, games, and in-app items on Kindle Fire tablets.

Kindle Fire 7 HD

Although full details haven’t been announced, Amazon says it will be giving customers millions of dollars’ worth of Amazon Coins to use in the Amazon Appstore - which suggests they could be provided as a loyalty reward. In addition, customers will be able to buy additional Amazon Coins.

One Amazon Coin will be worth one cent ($0.01). Developers will receive the same royalty payments regardless of whether payment is made using conventional currency or virtual coins.

Paul Ryder, Vice President of Apps and Games for Amazon, said “Developers continue to report higher conversion rates on Amazon compared to other platforms. Now we have another new way to help developers reach even more of our millions of customers. Amazon Coins gives customers an easy way to spend money on developers’ apps on Kindle Fire in the Amazon Appstore - and we’re giving customers tens of millions of dollars in Amazon Coins to get started. Developers who aren’t yet in the Amazon Appstore will want to make sure their apps have been submitted and approved by April 25 so they’re ready for customers to start spending their Amazon Coins.”

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