New currency from Amazon - Amazon Coins

In February 2013 Amazon has announced future launch of its own currency. It didn’t take much time before this project actually started out. This May Amazon integrated its own currency - Amazon Coins.

Amazon Coins can be used for purchasing apps, games and in-app products on Amazon Kindle Fire. You can buy new feature in your favorite game or send virtual goods to your friends. Amazon assures that Coins will work just as real money. By this initiative they are planning to increase sales attracting more customers and developers.

Amazon Coins are easy to count in real money: 1 Amazon Coin equals to $ 0,01. You can purchase Amazon coins in your Amazon account. Amazon also offers a 10% discount if buying in bulk.

To kick-start new currency Amazon will put $5 (which equals to 500 Amazon Coins) in user account of every Kindle Fire owner. Users can purchase apps and make in-app shopping. Still there is territorial restriction. Currently only US users can buy, receive and redeem Amazon Coins. United States refers to the 48 contiguous states, the District of Columbia, Alaska, Hawaii, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. Later Amazon Coins will expand for other countries too.

Users staying outside US can easily buy apps and in-app products with Amazon Gift Cards. You can make fast, safe and easy purchases with Place an order and receive amazon Gift Card in 1 business day.

Having already 2 methods of payment - credit/debit cards and Amazon Gift Cards - there is a question what for has Amazon launched its own currency? There are several possible answers. The first is that with virtual currency people are encouraged to buy more than with real money. Paying with virtual currency can make people forget that they actually use real money. This illusion pushes customers to spend more. In long-term perspective this is a benefit for developers too. As they receive 70% of every Amazon Appstore purchase, they can make more money on sales boost.

The second possible reason is usability of this virtual currency. It is very convenient for parents and their children. Now parents can load their child’s Amazon account with Coins to spend, rather than attach credit/debit card to the account to buy apps and in-app products.

Amazon Coins only came into existence, but already spurred a lot of attention. Some users, who had negative experience with Microsoft Points and Nintendo Points, do not predict possible further successful usage of Amazon Coins. The others are excited with the possibility to pay with virtual currency. Hard to say at the moment whether Amazon will benefit from Amazon Coins initiation.

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