You have heard the expression "the cashless society" and by now you probably don't doubt the power of online retail. Amazon.com, for example, reported recently that it sold about 73 items a second. And eBay is stated to have the 26th-largest economy in the world.
These numbers are staggering, but there are other numbers to consider as well, such as the growing incidence of online fraud.
When it comes to internet transactions, credit card fraud is a big concern, making the idea of a cashless society more appealing and the introduction of virtual currencies a certainty.
Ukash (www.ukash.com) is a new entrant to the world of online commerce, but such websites will become commonplace.
As the website explains: "Ukash is delivered as a ready-to-spend PIN code, which can be used to pay directly at one of the thousands of Ukash friendly websites. You get it by converting your cash at any one of the 275 000 global locations and, soon, via online bank transfer."
In other words, you go into a store that sells Ukash vouchers, buy a rand amount worth of virtual currency, then use the Ukash vouchers online or via your cellphone to buy products and services.
There's no cost to purchasing a Ukash voucher. And because you don't use a credit card, there's no risk of imaginative hackers stealing from you. It's as easy as buying airtime.
The benefit of a payment system such as Ukash is that people without credit cards can now also shop online - good news for people in developing countries that don't have high credit card penetration.
Information on where to buy Ukash vouchers can be found on the website.
However, we are expecting Ukash to partner with some local stores, so you can get hold the vouchers more easily. Presumably, as time goes by, there be more locations where Ukash will be visible.
According to a press statement from Ukash, the website is authorised by the SA Reserve Bank to operate in this country. It is also regulated by the Financial Services Authority in the UK.
The company experienced 257 percent growth in 2008, becoming the fastest growing provider of online alternative payments in Europe.
Uniquely numbered Ukash vouchers are widely available through payment terminals in Europe (and now also in South Africa) and via internet-enabled Vodafone cellphones in the UK.
South Africans lack the alternate online payment options offered in the US, including PayPal, for instance. Ukash is an innovative solution to the local market.
If you are an e-tailer looking to get a larger piece of the "payment pie", then this might well be a welcome addition.
The only downside we can see so far is that Ukash still has very low penetration in this country - its use is limited to those with access to the internet. Nonetheless it's a great idea, though still far advanced for the average South African.