Amazon creates virtual currency for tablets “Kindle Fire”

Amazon launched its own spring Coins virtual currency to pay for apps and games for your own Kindle Fire tablet computers in the U.S.. The company aims to attract new audiences and increase the interest of existing customers to digital goods. In addition, the virtual currency fits into the strategy of Amazon to create an alternative mobile ecosystem to compete with Google.
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U.S. online retailer Amazon launches its own virtual currency, Coins, through which users tablets Kindle Fire can pay purchase programs, games and associated products in the app store.

Amazon Coins will be available in May 2013 for users of tablets from the U.S..

“Consumers will shop as usual, but they will have a choice – pay for them with a credit card or Coins, – said the Amazon. – A developer will be another opportunity to stimulate traffic, load, and monetization. ”

Developers will continue to receive 70% of revenue from sales of software and virtual goods.

Virtual currency has never been popular among users of the application, because after using virtual means they do not always know how to spend the remainder. For example, if the application is 280 of virtual money, and the user acquired the 500, it will be 220, which is not actually needed. Amazon will remain in profit, as you convert more than was required for the purchase.

On the other hand, payment of virtual funds facilitates the purchase of applications and games: the user does not need additional ways to confirm their identity and credit cards. “A single virtual account for the child with the possibility of monthly recharge will welcome many technologically-advanced Parents” – said the expert NBC News Digital Devin Koldvi.

Apple, Google and Amazon are fighting for the interest of consumers to their platforms and devices. While the Amazon app store behind in popularity of Apple App Store and Google Play. The number of active users of Amazon’s platform is now more than 200 million people.

Barclays analyst Anthony DiClemente says that with the help of virtual currency Amazon hopes not only to attract new users and increase the interest of existing customers who buy the physical, not digital goods.

«Amazon is looking at various options to increase profits at the expense of simple things that do not lead to disputes with customers. This is always the first priority, “- he said.

The expert says Enders Analysis Benedict Evans, a virtual currency fits into the strategy Amazon to create an alternative mobile ecosystem to compete with Google. He added that as part of this work Amazon could develop or acquire mapping service or voice assistant.

“If Amazon wants to create its own smartphone, many of these components would be very important,” – he said.

Last summer, it was reported that Amazon is working on creating its own smartphone in collaboration with the Chinese Foxconn International Holdings. Amazon can make a profit from the sales of the device itself is not so much how much content to it, in particular books and music. Industry experts estimated the cost of the device in the range of $ 150-170.

Evans estimated, with the launch of the Kindle Fire on sale in 2011, Amazon has sold 10-15 million tablets. In the fourth quarter of 2012, Apple sold 23 million iPad.

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