Will Amazon Coins Outperform Real Money?
I don’t really get the allure of virtual money, but others apparently do as friends and colleagues have spoken with enthusiasm about the prospects of bitcoin and other forms of currency without the backing of any governmental agency. The latest to promote its own made-up money is Amazon.com with its Amazon Coins.
Yesterday, the company announced it would put 500 Amazon Coins, the equivalent of $5, into the account of every Kindle Fire to be spent on apps, games and in-app items.
"With discounts of up to 10% when you buy Coins, this is a great way for customers to save money when they buy apps, games and in-app items," said Mike George, vice president of Apps and Games at Amazon, in a statement. "We will continue to add more ways to earn and spend Coins on a wider range of content and activities."
Amazon, which initially introduced Coins back in February, is also looking to spur app development with its virtual currency. Developers will continue to earn their standard 70 percent share of revenues when Amazon customers make a purchase using Coins. Developers not currently selling through the Appstore can submit apps through the Amazon Mobile App Distribution Portal.
- Introducing Amazon Coins – Amazon.com
- Amazon Coins Now Available for Kindle Fire Customers – Amazon.com
- Amazon Now Offers Amazon Coins Virtual Currency on Kindle Fire, Give $5 in Free Coins to All Users – TechCrunch
What is your take on virtual currency in general? Do you see Amazon Coins as a worthwhile strategy for the company? How do you think consumers will react to Amazon Coins?