Amazon.com, Inc. (NASDAQ:AMZN) has just announced its plans for Amazon Coins, a virtual currency which enables users of the Kindle Fire to buy apps and make in-app purchases. The virtual currency will launch in May, and at that time, Amazon aid it will “be giving out tens of millions of dollars’ worth of Coins to customers to spend” on their Kindle Fire.
At first Amazon Coins will only launch in the U.S. The currency makes it easier for Kindle Fire users to buy apps because in the past, Amazon only accepted credited cards that were associated with the device. The use of virtual coins makes it easier for parents to keep track of how much their children spend on Kindle Fire apps. Each Amazon Coin is worth a penny, so the price of a 99-cent app on the Kindle Fire becomes 99 Coins.
Android developers who wish to publish an app on the Kindle Fire in time for the launch of Amazon Coins must submit their titles before April 25 so that they will be ready when the new virtual currency launches. Amazon.com, Inc. (NASDAQ:AMZN) said developers will receive the same 70 percent revenue share whether customers pay using Amazon Coins or a credit card.
Amazon Coins has the potential to make the Kindle Fire a very attractive platform for app developers because it makes it easier for parents to allow their children to make app purchases.
At this point Amazon.com, Inc. (NASDAQ:AMZN) has not said how many coins each Kindle Fire user will receive when it launches the program in May.