Amazon has announced a brand new currency, one which will only be valid in Amazon’s Kindle Fire App Store. The new currency will launch in the US in May, and upon its launch, will be handed out for free to the Kindle Fire crowd. According to Amazon, it will be giving away tens of millions dollars worth of free Amazon Coins on launch, with each coin worth 1 cent. These coins can be used to buy apps or in-app purchases on the Kindle Fire.
How will this affect you, you’re wondering? If you’re an app developer, this is good news. For you, Amazon Coins are worth exactly the same as real money, and the free Coins will definitely make it easier for users to spend money on your app. All you have to do as a developer is have your app or update ready and submitted by April 25, so it’s ready for Amazon Coins when it launches in May.
For users, it’s somewhat harder to see the advantages. While Amazon Coins will help create a bigger app selection and more loyalty for Amazon’s App Store, users will still have to pay the same for apps they want to purchase, after their initial gift Coins are all gone. On the other hand, tying your account to a limited supply of Amazon Coins instead of a credit card can help make sure your kids don’t go on shopping sprees, spending only what you’ve allowed them to spend on apps.
As a user, all you’ll have to do is convert real money to Amazon Coins, and you’re good to go. As is customary with Amazon, Coins will only be available for US customers, at least to start with. If the experiment goes well, we might see it expand to other countries.
What do you think of Amazon’s virtual currency? Will you use it?