Amazon adds virtual cash to boost app sales

Amazon, the world's largest online retailer, plans to introduce virtual currency that can be used for purchases on the Kindle Fire tablet to entice more developers to create programs for the device.

Starting in May, consumers will be able to use Amazon Coins to buy applications and acquire virtual merchandise sold within games, the Seattle-based company said on Tuesday. The company will give customers "tens of millions of dollars" worth of the currency, which will be accepted in the Amazon Appstore.

Amazon has been targeting developers to improve its app store, giving programmers the ability to make more engaging games and help it chase Apple's lead in the tablet market.

"The Kindle Fire user base is simply under-utilising the available apps, and this is an attempt to light a fire under those users and create some momentum in downloads and usage," said Brian Blair, an analyst at Wedge Partners in New York.

Developers will continue to get the 70 per cent revenue share from purchases made with the coins. After the coin giveaway ends, customers will be able to buy coins using Amazon accounts, the company said.

"Amazon Coins is an easy way for Kindle Fire customers to spend money in the Amazon Appstore, offering app and game developers another substantial opportunity to drive traffic, downloads," the company said.