U kash offers a new solution to make cash less transactions over the internet - and judging by the level of interest at their booth at Internetworld ‘business for the digital age’ (Earls Court, London), they could be on to something here.

So how does this work? Customer takes cash to the nearest ‘charge outlet’ and gets a receipt for the cash amount they want to spend. In the UK, and in some other countries in central Europe, this is possible through newsagents and convenience stores just as one tops up a mobile. Once you have this receipt the consumers simply enter the Ukash value and unique 19 digit number at the payment page - just like entering a credit card number - which is then validated in real time. If change is required a new 19 digit number and value is issued online to the consumer.

So what arethe major advantages for consumers? - Anonymity and protection from identity fraud. The downside being the charging and keeping change issues, plus if you lose the receipt without writing the number down, it is the same as losing cash.

And the retailers? U kash quote some key ststistics in the UK market and this is the reason they beleve it will work.

• 16% of the adults in the UK do not own a payment card
• 2.8 m consumers in the UK are unbanked
• 1 in 5 consumers in the UK are refused credit
• 72% of the credit card holders do not use their cards to transact online

I can only think that these figures will only be higher in the emerging markets - and according to their Commerical Director Andrea McGeachin, they are intending to expand into Asia as well. There is of course the fundamental dependency on the number of outlets which exist in a country to buy Ukash before using it online. But this could be solved soon by their plans to join forces with Vodafone to allow customers to buy Ukash through their mobile.

Hotels which face resistance to online bookings with cards would do well to take note and give the consumer one more option to get that next booking….

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