SETcom, a new Internet commerce service provider, has launched an electronic transaction gateway product which it says is SA's first SET-compliant solution.
Secure Electronic Transaction (SET) is a technology developed by Master Card and Visa to ensure maximum online payment security. In addition to encrypting payment information, SET uses digital certificates to verify that consumers and merchants are both authorised to use and accept a credit card.
David Liu, SETcom CEO, says the SETcom product has been developed in conjunction with First National Bank, which made a substantial investment in SET infrastructure and development.
SETcom' s own Internet store, Gamecity (www.gamecity.co.za) has been a SET test site since June this year, says Liu.
Jentje Hoadley, SETcom sales and marketing director, says the solution has a competitive advantage in that it's far cheaper than other local Internet transaction services, and yet it offers more advanced technology to the widely used Secure Sockets Layer (SSL) protocol.
SETcom, however, will support both SSL and SET transactions. "Merchants can elect to have both options, thus not restricting potential buyers who are not yet SET-enabled," says Liu.
Hoadley explains that SETcom charges a R1 500 set-up fee, a monthly R150 fee and a 2% transaction fee or a flat monthly rate, "which ever one works out cheaper for the client".
SETcom will sell the solution through its channel partners and direct sales operation. The company aims to have 50 clients by the end of this year and 1 000 by the end of next year.
Hoadley notes that SETcom will waver the R1 500 set up fee for channel partners who sign up before 20 December.
Liu estimates that there are about 100 000 merchants who accept credit cards in the country. "We believe that 5% of those can be turned into online merchants. However, we expect the biggest growth to come from new businesses that are not merchants now but plan to set up stores on the Internet."
SETcom is 50% owned by MMW Technology Holdings and 50% by its management.
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