DiData provides secure payment system for international Web transactions

A secure payment system developed by Dimension Data i-Commerce has enabled GoldMoney to launch "GoldGrams", a risk-free form of electronic payment.

The project is part of GoldMoney`s bold plan to introduce a new form of non-cash currency designed specifically to boost international e-commerce by facilitating instantaneous, secure payment for goods or services on the Internet. GoldMoney is backed by some of the world`s leading gold analysts and marketers.

The payment system will enable individuals and businesses to convert their payment currency into GoldGrams by taking ownership of securely stored gold bullion for the duration of the payment transaction, or longer if desired. The "virtual" GoldGrams in the Internet space thus represent "real" gold assets in the physical world on a one-to-one basis. All payment risk is eliminated because the transaction uses gold bullion, which legally belongs to the payer and is transferred to the payee during the procedure. GoldMoney owns the US patent for all such transactions.

"The concept is to introduce a convenient, fast and inexpensive mechanism of payment for international organisations, custom-designed to facilitate business-to-business trade on the Internet," says Alan Bolton of Dimension Data i-Commerce, which is responsible for providing the technology and security infrastructure for the new venture.

"Payment over the Internet can be made in real-time for a fraction of the present costs of international transactions, as opposed to the typical clearance delay of three to four days and a transaction cost of about $20 that international payments currently take."

According to Bolton, gold was chosen as the most viable asset to underpin the virtual currency, mainly because it is an established international medium of exchange in its own right. It also has the advantage of being a solid, tangible asset while at the same time being highly liquid.

Although gold is a secure asset, failsafe security plans and systems need to be firmly entrenched before GoldGrams can be traded freely on the Internet. "Obviously the potential for fraud is always present, but Dimension Data has created a world-class, virtually impregnable security solution embedded within a custom-designed and custom-built hardware and software infrastructure," Bolton says.

In order to establish the concept, the venture has been launched internationally with an initial business-to-consumer version. The larger business-to-business version is currently being completed. Check it out at www.goldmoney.com