TradeCard and Tradelink to drive imports and exports online
Information Age, By Samantha Chan

November 18, 1999 - US-based TradeCard Inc, and Tradelink Electronic Commerce Limited have signed an agreement that will enable Hong Kong business to complete trade and financing transactions through the Internet. TradeCard will provide a trusted transaction, payment and settlement system that is designed to expedite the trade process by cutting out the time taken to perform the necessary paperwork that accompanies every trade transaction. According to Kurt Cavano, Chief Executive Officer of TradeCard, the global trade market is worth US$5.5 Trillion, of which US$420 billion is spent on paperwork processing, representing a huge opportunity for cost savings.

"TradeCard represents a new payment alternative for international trade, that is far easier to use than a letter of credit, more secure than open accounts, and is based on a flat fee per transaction," said Kurt Cavano, Chief Executive Officer. Already, TradeCard and rival US company, Bolero International Ltd are putting pressure on trade banks to either sign up with their systems or risk being eventually phased out from the trade cycle when the physical issuance of letters of credit from banks for the majority of international trade deals will be replaced by electronic settlement.

Both Tradelink's and TradeCard's services will compliment one another, and Tradelink will now be able to offer financial transactions, one element that is missing from its current e-commerce offerings. "We are already building a wide range of Internet services and an information platform to help them do that. By working with TradeCard, we can offer local businesses a complete and secure cycle of electronic services from purchasing to licensing and trade payments," said Justin Yue Kwok-hung, Tradelink's CEO.

Tradelink is the joint venture between the Hong Kong Government and 11 private sector shareholders that has been an instrumental vehicle in automating the Government's trade transactions electronically. Says Yue, "More than 75 percent of all import and export declarations are now processed electronically, and all of them will be by next April when the Government closes its last Custom and Excise collection office in Sheung Wan."

Tradelink currently has 41,000 customers in Hong Kong and mainland China. To become a TradeCard member, businesses must first become approved members and will each receive digital certificate tokens, essentially smart cards which contain digital data on each trading partner's identity that gives them access to the network. When a buyer and seller agree to transact, TradeCard enables them to negotiate terms for settlement on-line. According to TradeCard, every purchase order carries a payment guarantee meaning that the seller will automatically be paid within 30 days if electronic compliance is met.

From early next year, local business will be able to sign up through Tradelink web site to become TradeCard members and then begin transactions with other TradeCard members around the globe. For trade transactions between US$10,000 and US$50,000, TradeCard will charge a flat fee of USD $150 for the entire transaction that applies to both trade import and export parties. There is also an annual membership fee of US$250, which will be waived if businesses join within the first six months of the launched service.

TradeCard is currently talking to two major banks in Hong Kong. The company is currently conducting 6 pilots around the world, including Singapore, Hong Kong and Korea that will end in early December. TradeCard is expected to launch its service worldwide in the first quarter of next year. The company will continue to aggressively seek partnerships.