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Global Sources and Tradelink members can leverage services to conduct business transactions with e-commerce speed
NEW YORK, March 28, 2000 - TradeCard, Inc., a business-to-business (B2B) service that provides a complete and secure on-line payment alternative for international trade transactions, today announced its worldwide service launch in Hong Kong - the trading hub of Asia.
TradeCard's service is set to fill a major gap in the current business-to-business e-commerce model, which lacks a practical and effective on-line payment settlement mechanism. Starting today, members of Tradelink and Global Sources can register for the service to enjoy the benefits and effectiveness of secure online payment settlement.
This follows closely on the heels of the strategic investment announcement in TradeCard by Softbank Finance Group, Mitsubishi Corporation, and Mitsui & Co., and the offer of payment assurance through an alliance with Coface, the world's largest export credit insurer.
With this new service, members of Hong Kong's trading community can now be linked to businesses around the world through TradeCard's electronic data compliance and financial settlement network. The services TradeCard provides expedite trade and payment processes and enable companies to conduct more business globally.
Global Sources, the essential infomediary and B2B market maker for volume buyers and suppliers worldwide, has today entered into a strategic partnership agreement with TradeCard to offer its community a series of financial e-commerce services. Global Sources' community members can register as TradeCard members to further enhance the efficiency and effectiveness of their global trade transactions. As part of the TradeCard strategic relationships with Tradelink and Global Sources, Tradelink will provide an on-the-ground customer call center, and Global Sources will provide the first business-to-business community where TradeCard members can transact business.
"Businesses worldwide spend US$420 billion every year on trade financing and paperwork associated with shipping and receiving products," TradeCard's Chairman and Chief Executive Officer, Kurt Cavano, said today in Hong Kong. "Our aim is to help these businesses improve purchasing and delivery efficiency, which in turn will boost their productivity and returns. TradeCard will help cut costs by increasing efficiencies, and will enable businesses to both receive an assurance of payment from overseas buyers and expand the global reach of their business," he said.
The demand for an on-line payment solution is apparent as companies of all sizes in Hong Kong, mainland China and Asia begin to move towards e-commerce via Internet business-to-business trading communities. Gartner Group estimates that worldwide business-to-business e-commerce will grow to US$7.29 trillion by 2004, fuelled by companies' efforts to cut expenses by conducting transactions over the Web. They also predict e-commerce in Asia Pacific could be worth as much as US$340 billion by 2003. Of this, about US$270 billion would be in business-to-business trade, specifically relating to supply chain management issues.
TradeCard provides companies with a means to complete their international transactions electronically, reducing the time, cost and inefficiencies involved. TradeCard provides a solution that is easier to use and far more efficient than a letter of credit, more secure than open accounts, and available for one flat fee per transaction.
"By using the Internet to process transactions, TradeCard facilitates trades in e-commerce speed as opposed to the weeks or months a conventional trade can take," explained Cavano. "Companies can realize greater efficiency and competitiveness by taking advantage of TradeCard services here in Hong Kong through our strategic partnerships with Tradelink and Global Sources."
"TradeCard's on-line payment service for international transactions will significantly enhance the e-commerce solution Global Sources offers to our members, from product sourcing to financing and delivery," said Chairman and Chief Executive Officer Merle Hinrichs. "Our partnership will offer greater opportunity for global trade to buyers and sellers in the world, as well as greater time and cost savings to the whole international trade process. This initiative underscores our commitment to providing a total end-to-end B2B e-commerce solution for our community."
TradeCard services will also now be offered in Hong Kong through a partnership agreement with Tradelink, whose mission is to help Hong Kong's local trading community enhance its efficiency and stay competitive in the global marketplace through greater use of electronic commerce. Hong Kong businesses will be able to sign up through Tradelink to become TradeCard members and then begin transactions with other TradeCard members around the globe.
"Through our well established infrastructure which currently supports nearly 50,000 customers, Tradelink will facilitate TradeCard services by providing local e-commerce facilities and support to TradeCard members,'' said Justin Yue Kwok-hung, Tradelink's Chief Executive Officer. "As our strategic alliance grows, TradeCard and Tradelink will add further service and technology integrations that will simplify trading procedures for Hong Kong traders, greatly enhancing their efficiency and competitiveness in the global marketplace.
How TradeCard Works
When a buyer and seller agree to transact, the buyer creates an electronic purchase order. This document specifies the contract terms and conditions, which the seller can approve or negotiate. Once the transaction is established in electronic form with both parties in agreement, the seller formally approves the terms of the purchasing contract.
The purchase order is stored electronically in TradeCard's secure and proprietary database. The patented TradeCard compliance engine uses the data from the purchase order to ensure that the information on all transaction documents is valid and secure.
Using the purchase order data, the system can automatically generate both a commercial invoice and a packing list, which can be updated by the seller. At this point, if the buyer is in good standing, an assurance of payment is attached to the invoice ensuring that the seller will be paid upon compliance.
TradeCard then electronically obtains proof of delivery from a third-party logistics provider. Once there is compliance, TradeCard electronically debits the buyer's account at its financial institution and electronically credits the seller's account. TradeCard's global payment provider arranges the money movement. In addition to these core features, TradeCard users can contract for inspection services, cargo insurance, or other value-added trade services.
About TradeCard, Inc.
TradeCard enables online international trade transactions. Our mission is to make cross-border trade trusted, efficient, accurate and inexpensive. Through the use of patented web-based transaction-processing technology, and by aggregating the disparate services necessary for international trade, TradeCard helps put the business of trade back into the hands of the buyers and sellers. TradeCard, Inc. is headquartered in New York City. TradeCard can be found on the worldwide web at www.tradecard.com.
About Tradelink
Tradelink is a joint venture of the Hong Kong SAR Government and the private sector, whose shareholders are all key players in the local trading community. Its mission is to promote the use and development of electronic commerce services in Hong Kong as an important means of helping the trading community to stay competitive internationally. More information about Tradelink can be located on the worldwide web at www.tradelink.hk.
About Global Sources
Global Sources' mission is to be the essential infomediary and B2B market maker for volume buyers and suppliers worldwide. The Global Sources network of geographical and industry web sites access the world's most comprehensive database of export products and suppliers. Global Sources web-enabled catalog, messaging and order management tool, which includes Global Sources Transact and Global Sources Connect, provides a complete B2B end-to-end e-commerce solution. More information about Global Sources is located at www.corporate.globalsources.com.
