Amazon Coins to be given away by the Tens of Millions

It seems we have a bit of a ‘virtual currency’ theme running throughout the ‘State of the Internet’ update this month with Amazon soon to release its ‘Amazon Coins’.

Amazon Coins is a new virtual currency for U.S. customers to purchase apps, games, and in-app items on the Kindle Fire. When Amazon Coins launches in May, Amazon will give out tens of millions of dollars in Amazon Coins to customers to spend on Kindle Fire apps, games, or in-app items.

Developers will still receive the same royalty payments regardless of what payment method is used. One Amazon Coin is worth one cent, so if an app costs $2.99 it will cost 299 Amazon Coins.

For customers, it’s an easy way to spend money on Kindle Fire apps and games. They’ll be able to purchase as they do now, but with the ability to choose to pay with a credit card or using Coins.

Amazon Coins can’t be used for subscriptions, and customers won’t be able to spend Coins on Kindle books, music from Amazon MP3, or anything else Amazon offers.

Amazon Coins cannot be cashed out or exchanged between customers, so the term “currency” is a bit of a stretch.

It seems the real reason to launch this new payment methodology is as a way to drive more volume and velocity in digital goods purchases on the Kindle Fire by letting customers try out the buying process there for free in the hope that they will get hooked.

Speak Your Mind


* Copy This Password *

* Type Or Paste Password Here *