FIRST META -- With customers still reeling from last weeks Midas Commons bond default, and the financial sector looking increasingly unstable in the real world, now might not seem the best time to launch new financial services in Second Life. However, where there are problems there are also opportunities, as new financial institution First Meta is hoping to prove.

The recent introduction of the firm's MetaCard credit card scheme marks First Meta's initial foray into the Second Life financial sector but it is already a big hit with merchants. “I have noticed an increase in sales and traffic,” said fashion store owner Thalia Tal. “Sales that I wouldn't have otherwise.”

The system is essentially a series of scripts that mimic the workings of a real world credit card. Customers can apply for a credit account with First Meta and if approved they can then use the credit system on any products sold by participating vendors. For merchants, installing the system on their product lines requires the use of a script provided by First Meta. This simplicity has made the system a big hit with several merchants but others are not as convinced. “[To] use the MetaCard I would have to add 1 more [vendor]...it's better that I don't confuse all my customers” said one vendor, who preferred to remain anonymous.

The card itself comes in three different versions: basic, gold and corporate. Each has a different credit limit and different requirements are placed on their users, with basic cards offering the lowest credit limit but also requiring the least security. Basic card accounts are available to everyone, subject to security vetting, while gold accounts require the backing of a real world credit card due to their higher credit limits. Corporate accounts, which offer the highest credit limit, are made available solely to merchants participating in the MetaCard payment scheme.

As in the real world, merchants pay a handling fee for all transactions paid for under the MetaCard scheme but this fee appears to be offset by the increased number of sales they receive. Similarly, card holders are expected to pay a low monthly fee to have a MetaCard account, with this being waived if their card is used to make purchases over a certain value each month. For basic and gold accounts the fee is L$300 (waived if purchases valuing L$500 or more are charged) while for corporate account holders the charge is L$500 (waived if L$1000 or more is charged). The fee is effectively a charge for having the card but not using it.