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I am trying to understand the concept of a marketplace for B2B cashless transactions. What are some examples (if any) where participation in such a marketplace can prove equitably beneficial to small businesses and/or society as a whole?

Example: http://www.itex.com/

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What's "B2B cashless transactions"? –  littleadv Dec 12 '12 at 3:48
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@littleadv - That phrase sounds like bartering, but specifically a business to business barter? And the 'B' makes it not Personal Financial, IMHO. –  JoeTaxpayer Dec 12 '12 at 4:13
    
Welcome to the site Micah. Could you refine your question and include some background information? What event in particular prompted this question? That context will help get you an answer. –  MrChrister Dec 14 '12 at 9:00
    
I added an example of exactly what I am talking about. –  Micah - ps I love you Dec 14 '12 at 17:17
    
Isn't this just barter? –  Chris W. Rea Dec 16 '12 at 19:46

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I think this is off topic, but here is a stab:

So these are cashless. It could be a way to smooth out the harsh reality of capitalism (I overproduced my product, I have more capacity than I can sell) and I can trade those good to other capitalists who similarly poorly planned production or capacity.

Therefore the market for a system like is limited to businesses that do not plan well. Business that plan production or capacity to levels they can already sell for cash do not need a private system to offload goods.

Alternatives to such a system include:

  • Laying off a workforce
  • Slowing down production until inventory matches demand
  • Selling or moving business space
  • Offering products or services at a discount or coupon price.

(I don't know how many businesses are really in this over production / over capacity state. If my assumption that it isn't many is wrong, my answer is garbage.)

This is a bartering system with a brokerage. I think we have historically found that common currencies create more trade and economic activity because the value of the note in your pocket, which is the same type of note in my pocket, is common and understood. Exchange rates typically slow down trade. (There are many other reasons to have different currency or notes on a global sale, but the exchange certainly is a hurdle to clear.)

This brokerage is essentially adding a new currency (in a grand metaphor). And that new currency is only spendable on their brokerage, which is of limited use to society as a whole, assuming that society as a whole isn't a participating member of that brokerage.

I can't really think of why this type of exchange is better than the current system we have now. I wouldn't invest in this as a business, or invest in this as a person looking for opportunity.

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This could be so wrong, it is community wiki. Whoever knows better than me, edit away or write a better answer. –  MrChrister Dec 16 '12 at 19:16

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