Gold rush: Amazon to spark user spending spree with new Kindle Fire virtual currency

Amazon Coins is go

Gold rush: Amazon to spark user spending spree with new Kindle Fire virtual currency
Amazon has unveiled a new virtual currency platform that Kindle Fire owners in the US will be able to use to purchase apps, games and in-app goods.

The currency – Amazon Coins – will launch in May alongside a sizeable giveaway campaign, with the company promising to hand out "tens of millions of dollars' worth of free Amazon Coins."

Coin frenzy

The new system is not a credit card replacement, however. 

As a result, developer revenue from consumers who utilise Amazon Coins will remain constant with other payment options.

The aim of the new platform, of course, is to encourage increased user spending, with the currency giveaway expected to spark a spending spree. As a result, Amazon is keen developers implement Amazon Coin payments within their apps in time for launch.

Fortunately, if an app is already available for sale on at least one product in the current Kindle Fire range, no additional work is required to make it compatible with Amazon Coins.

Those submitting new apps to the Amazon Appstore, or with app updates to roll out, should take care to do so quickly, however.

Monetise this

"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," explained Amazon's VP of apps and games Paul Ryder.

Ryder claims developers already report "higher conversion rates on Amazon compared to other platforms", even before the implementation of Amazon Coins.

"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."

[source: Amazon]

Staff Writer's news editor 2012-2013