Amazon, like Zynga, Second Life, and a host of other companies in the software and programming business, has created its own currency called, “Amazon Coins”. The coins are valued at  $0.01 USD, and at this point will only be used to buy apps in the amazon app store.

Virtual currency, of course, is not new. It has allowed companies like Zynga to pull down $100 million a year by offering minor game upgrades for “Favor Points,” ($5.00 for 21). And more than a few have become actual millionaires by playing Second Life, earning In game currency, and then converting that currency into USD.

What is new is Amazon’s attempt to instill brand loyalty. Amazon became big by stealing customers, pure and simple. They stole customers from traditional bookstores, traditional retail outlets, and from other major online book and tech dealers. So if anyone knows how fickle the web has made the modern consumer, it's Amazon. Which is why, of course, Amazon has decided to roll out a new system to engage and reward customers. The company plans to give away tens of millions in currency, knowing that customers will soon adopt the coins, enjoy their free coins on new products, and begin to have difficulty distinguishing between 499 coins and $4.99 when it comes to the amount purchased. It also offers consumers a genuine ‘pain’ point if they ever try to get rid of their Kindles (“But I still have $15 dollars in coins left!”)

Do you think this innovation will really change things? Will this lead to more people using Amazon Apps?