Amazon Throws 500 Coins in the Fountain

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Amazon.com has seen Facebook and Zynga cash in on virtual currency, and now it wants a shot at playing banker.

"If you own a Kindle Fire, you'll find a little unexpected something in your account right now -- 500 Amazon Coins, worth $5," Amazon announced on its home page earlier this week.

The leading online retailer is letting tablet owners use the coins to buy apps and games, as well as virtual items within those applications. 


In this video, longtime Fool contributor Rick Munarriz explains how it's a win-win situation. Smaller developers will make it easier to make money. As more players have virtual currency to spend, Amazon picks up an incremental revenue stream by keeping a little less than a third of the revenue, while educating Kindle Fire owners to spend more on digital goodies.

Everyone knows Amazon is the king of the retail world right now, but at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of competitors'. The Motley Fool's premium report will tell you what's driving the company's growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.

The article Amazon Throws 500 Coins in the Fountain originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Facebook. The Motley Fool owns shares of Amazon.com and Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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