Amazon is looking to promote its virtual currency AmazonCoins by announcing that they will put $5 of the currency, or 500 Coins, into all Kindle Fire user accounts, to buy apps and in-app purchases on its platform.
Cash is not the only option if you are a Kindle Fire User
Announced in February, Amazon Coins works on a system wherein the user redeems real currency for the virtual kind. This is then used to buy games, upgrades, life extensions or even virtual gifts for your near and dear ones. The logic behind this is that it is easier for a user to spend virtual currency, rather than cold hard cash.
With the company pumping in ‘tens of millions of dollars worth of Amazon Coins’ to the platform, the potential for virtual currency along with other examples such as bitcoin is the talk of the town. This is not a new phenomenon though, with other virtual currency networks already being run by Facebook, Zynga and many others. The aim has always been to get more "money" spent on games and other upgrades on their platform.
For Amazon though, this is a two pronged move into the social gaming arena. Firstly, this is a good way to entice developers to come in and increase their revenue by adding to the pool of apps available. Secondly, it is also a good way to increase the company's overall revenue generation.
With Amazon allowing real world currency to also be used to buy apps, the options are varied. Sweetening the deal, the company announced a discount of 10% for users buying coins in bulk. Developers will also get a standard 70% revenue share on all the coins spent.
With the company making Coins a very user-friendly experience, courtesy the discounts, it is likely to extend the currency to all other parts of the social platform. Coins will most likely be offered beyond the U.S. as well, based on the popularity of virtual currency in markets like Europe and Asia.
Published Date: May 14, 2013 09:41 am | Updated Date: May 14, 2013 09:41 am