Amazon to introduce new virtual currency

Online giant Amazon is to introduce a new virtual currency called

Amazon Coins that will be used by shoppers to purchase apps, games and in-app items on the Kindle Fire tablets.

Launching in the US in May, Amazon said the coins will provide an easy way for Kindle Fire customers to spend money in the Amazon Appstore and will also offer app and game developers a further opportunity to drive traffic, downloads and increase monetization.

When the new currency launches, Amazon will give customers “tens of millions of dollars worth of free Amazon Coins” to spend on developers’ apps on Kindle Fire in the Amazon Appstore. Customers will also be able to buy additional Amazon Coins using their Amazon accounts.

Paul Ryder, Vice President of Apps and Games for Amazon said: "Amazon Coins gives customers an easy way to spend money on developers’ apps on Kindle Fire in the Amazon Appstore—and we’re giving customers tens of millions of dollars in Amazon Coins to get started.

"Developers continue to report higher conversion rates on Amazon compared to other platforms. Now we have another new way to help developers reach even more of our millions of customers."