Sunday, November 23, 2008

Linden lab Uses 3rd Parties to Sell Lindens (L$'s) Internationally

Strange that Linden Lab cannot do this themselves and save Residents the padded commission costs for 3rd party exchange operators ... or better yet, keep the commissions themselves. Seems to PG this is a way to pass the risk on to 3rd party payment providers and international resellers for local legal compliance and regulation. Clever move short term given the exposure to local laws on money transmission and virtual currency exchange issues. However, it is doubtful this is a viable confidence-in-the-L$-building strategy long term:

"GlobalCollect Partners with DX Exchange for European Online Currency Conversion to Virtual Money
DX Exchange has signed an agreement with GlobalCollect, the world's premier payment service provider of local e-payments, to enable Second Life Residents to exchange European currencies for virtual money

Last update: 4:16 a.m. EST Nov. 17, 2008
AMSTERDAM, The Netherlands, Nov 17, 2008 (BUSINESS WIRE) -- DX Exchange, a Dutch 3D media company and Virtual Service Provider, has teamed up with GlobalCollect to allow Residents of Second Life(R), the popular 3D online virtual world created by Linden Lab(R), to exchange Euros for Linden Dollars, the currency used to pay for goods and services offered in Second Life. The local e-payment methods offered via GlobalCollect's single-interface platform WebCollect will initially be direct debits plus Giropay, Paysafecard, Ukash, and Wallie in Germany as well as iDeal, Paysafecard, Ukash, and Wallie in the Netherlands. Future plans entail expanding this service to the UK, France, Belgium, and other European countries.
Via GlobalCollect's online payment platform WebCollect, the Second Life community already had the ability to buy Linden Dollars by means of credit card payment in US Dollars since 2007. The newly formed cooperation between DX Exchange and GlobalCollect enables European Second Life Residents now to acquire Linden Dollars by paying in Euros and soon British Pounds. Plus, they can select from a choice of preferred local payment options while receiving local language support.
Bart Bockhoudt, CEO of DX Exchange said: "Teaming up with GlobalCollect gives us the opportunity to expand into the rest of Europe faster and on an even more professional level. Meaning, we can focus on our core business of providing local support."
Jan Manten, CEO of GlobalCollect, continued "We've already been servicing credit card transactions in US Dollars for Second Life since April 2007. Thanks to the collaboration with DX Exchange we can now expand this service to include European currencies and a wide choice of popular local payment methods. In addition, we offer a comprehensive Fraud Screening Service to minimize the risk of fraudulent transactions within the online environment."

The even resell SL land al la Anshe Chung.

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