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Money of many sorts Second Life’s forthcoming Local Payments system has attracted a couple of key concerns – aside from some more obvious issues about it kind of not working all of the time.

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You may have seen the name ‘Gisland’ associated with 888 and Dragonfish. I mentioned it on Massively, about a year ago. Apparently, Gisland is a subdivision or subsidiary formed by 888 as a part of their payments processing arrangements for Second Life with Linden Lab.

The word doesn’t seem to mean a whole terrible lot, but you could read it as “G-Island”. If that “G” looks like it might stand for “Gambling”, well … actually that might be a really good guess, as it turns out.

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I’m grateful to have been contacted by source who was formerly close to the payment processing project (which I talked about here). While no longer involved with the Lab, they were able to fill me in on some of the specifics, and particularly as to what the status of Paypal payment processing for foreign Second Life customers.

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So, this is the deal, apparently. About a year ago, Linden Lab entered into a deal with 888/Dragonfish – a payments processor and online gambling firm – to handle overseas payments processing for Second Life. It isn’t clear exactly when they started doing business. If Dragonfish (thanks folks!) hadn’t sent me information about it at the time, it would have slipped by under the radar entirely. Linden Lab doesn’t like to reveal which company is handling their payments processing at any given time.

Since then, we have the new Local Payments system which appears to be in place… about now-ish. The new Local Payments system allows foreign customers to pay in currencies other than US Dollars – which is good for some overseas customers, but a bit rubbish for others. Most particularly, 888/Dragonfish aren’t accepting payments from Paypal or from American Express at this time.

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