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A new start trade finance provider says its proprietary online payment system has enabled one of its customer's to bypass letters of credit. Traxpay claims that as a result, an unnamed UK-based oil importer trading with Saudi Arabia is making substantial savings. According to an announcement by Traxpay, the importer used to purchase oil using L/Cs from its bank under an arrangement in which the company had to keep US$250 million of its working capital in the bank and pay interest at a rate of 2.25 per cent on that amount. Using Traxpay, which has been described as a business-to-business version of the PayPal electronic payment system, the company no longer needs to commit its working capital and pays an interest rate of less than one per cent.