Amazon introduces "Amazon Coins" for some reason

A new currency, in case you don't already have enough currencies.

Amazon is launching its own currency and I'm not entirely sure why.

The company announced the creation of "Amazon Coins" with the intention that they be used for microtransactions on Kindle Fire apps and games. One Amazon Coin will be worth exactly one cent, and to incentivise developers to include the currency, Amazon will be giving "tens of millions of dollars" worth of coins to US customers when they're launched. Amazon will take a 30 per cent cut of all transactions using Amazon Coins, as it does with sales on its store.

It's not really clear why Amazon feels the need to do this, however. The company has built up an incredibly comprehensive database of payment information from customers — a market advantage shared by Apple — and has always apparently been happy stomaching the credit card fees that eat away at micro transactions normally. That is the normal reason for requiring an alternative currency, because it ensures that people spend their money in multiples of some large amount — in effect, it imposes a minimum spend of the smallest possible top-up.

Similarly, some companies also like the advantage of controlled currencies in abstracting away the true cost of purchases. Microsoft Points, for example, are the currency used by XBox Live. An 800 points card costs roughly £7.99, but a 2100 points card costs £16.87. As a result, it's hard to keep track of your spending on the service. Is a game costing 1500 points a good deal? A bad one? Sometimes the maths get tricky. Yet 1 Amazon point is 1¢. So that can't be the reason.

All should become clearer once the company launches and things like developer restrictions and purchasing practices are announced. But for the time being, we just have to wait and see.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
Show Hide image

Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

0800 7318496