Sino Payments Company Presentation


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Sino Payments provides IP credit and debit card processing services to large retail chains, including supermarket chains and large regional multinational retailers, in China and throughout Asia.

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Sino Payments Company Presentation

  1. 1. Property of Sino Payments, Inc.. (2010) Sino Payments Investor Presentation January 2010 OTCBB: SNPY
  2. 2. China: Debit/Credit Card Growth <ul><li>1.720 Bln Annual Transactions in China [June 2007] (Yet the transaction processing sector remains significantly underserved. ) </li></ul><ul><li>In 2007 China had 1Bln + domestic-use debit cards and 104.7 million credit cards. </li></ul><ul><li>Number of retailers accepting credit cards has grown by 50% per year since 2002. As of June 2007, there were 617,000 merchants accepting cards via 980,000 P.O.S. terminals. </li></ul><ul><li>Bankcard spending amounted to USD 171 Billion as of June 2007. </li></ul><ul><li>We estimate that less than 10% of the nation's merchants accept credit and debit cards leaving room for unprecedented growth. (i.e. Australia’s installed card accepting merchant base is approx. the same size as China’s number of card accepting merchants with roughly 1% of China’s population.) </li></ul>
  3. 3. US/Int’l: Efficient Electronic Funds Processing (EFT) Consumer Merchant Payment Processor CUP or Visanet Card Issuing Bank Order on-line <ul><li>Send transaction info </li></ul><ul><li>Request authorization </li></ul><ul><li>Format verification request (number/address) </li></ul><ul><li>Conduct fraud screening </li></ul><ul><li>Request authorization </li></ul>Request authorization <ul><li>Evaluate cardmember account </li></ul><ul><li>Authorize transaction </li></ul>Send authorization Complete sale 0.50% per transaction 1.50% 0.75% - 1.50% Send authorization Processing Fee Breakdown 2.75% - 3.50% Domestic Switch
  4. 4. Domestic/Int’l: Revenue Opportunities Processing fees generated via: <ul><li>Expand existing systems or attract new merchants (acceptance of all cards instead of single bank issue cards) </li></ul><ul><li>Enable online transactions (i.e. Online Air-ticket and travel bookings)[i.e. Et-china, Ctrip] </li></ul><ul><li>Convert old to new technology at sites currently installed (Conversion of card swipe terminals from dial-up terminals to net based IP terminals) </li></ul><ul><li>Negotiate wholesale rates for coops or organizations in provinces or cities- like affinity cards </li></ul><ul><li>New retail, non-domestic, chain/big box or other newcomers </li></ul><ul><ul><li>Regional merchants like AS Watsons Group (HK/China/Thailand/Philippines/Malaysia) </li></ul></ul><ul><ul><li>Chain Stores, Supermarkets, and Restaurants </li></ul></ul><ul><ul><li>Duty Free operators and other Regional Retailers </li></ul></ul><ul><li>4. International Retailers entering China or Asia </li></ul>
  5. 5. Sino Payments Asia Regional Solution: IP-based Global Merchant Processing via In Country infrastructure Europe Japan China Hong Kong Singapore North America Other Asia Worldwide Processing – Europe, Asia, and N. America Japan Hong Kong Australia Singapore Korea India Processing through “In Country” Payment Switches. Global Cross Border Acquiring. Sino Payments Merchant Processing Hub
  6. 6. Sino Pay China Card Processing System Merchants have access to the universe of China and International issued cards without having to establish direct systems to individual China and Int’l banks. 2. Merchant or Utility Bill Pay 2. Transaction transmitted through Sino Pay gateway to China UnionPay. 5. 5. China UnionPay remits funds to Merchant’s account. 6. Merchant 4. China UnionPay 4. Sino Pay routes data to China UnionPay or other In Country Switch for processing and settlement of funds with Cardholder’s bank (72hrs). 3. 3. Global transactions aggregated at Sino Pay Hub via IP In Country processing systems. Sino Pay Processing Hub 1. CUP Debit or Credit Cardholder 1. Cardholder buys product at the merchant who then captures and routes the credit/debit card info.
  7. 7. Sino Pay Existing Build Out Program <ul><li>SNPY has completed the worldwide ecommerce integration for 40+ countries and 170+ banks (acquirers). </li></ul><ul><li>Acquiring agreements (agent for merchant accounts) : </li></ul><ul><ul><li>Asia (HK, Singapore, China, Japan) </li></ul></ul><ul><ul><li>Europe </li></ul></ul><ul><ul><li>North America </li></ul></ul><ul><li>SNPY has one flat wholesale rate (buy rate) in most markets for merchants and creates independence for SP </li></ul><ul><li>Global Cross Border Systems for single point of integration regardless of store location </li></ul>
  8. 8. Intermediaries and Partners <ul><li>Terminal Hardware and Software Provider </li></ul><ul><li>Card Associations as Merchant Referral Representative for Valitor – Visa/MasterCard/AMEX/JCB/Diners </li></ul><ul><li>China UnionPay integration via Worldwide Ecommerce Backend </li></ul><ul><li>Payment Gateway Provider </li></ul><ul><ul><ul><li>China UnionPay </li></ul></ul></ul><ul><ul><ul><li>Japan </li></ul></ul></ul><ul><ul><ul><li>Worldwide Ecommerce </li></ul></ul></ul><ul><ul><ul><li>Card Present Country by Country Solutions </li></ul></ul></ul><ul><li>Financial Institutions (Acquirers) </li></ul>
  9. 9. Experienced Management Team One of the world’s leading experts in electronic payment processing and settlement particularly as related to the industry in Asia Pacific. First Data Asia Pacific – Ecommerce, Strategic Planning, Business Development Founder & Chairman, Japan Ecommerce, K.K. Founder & Chairman, Asia Payment Systems, Inc. (NASD OTCBB) Founder & Former Chairman, Sino Fibre Communications (SFBE) <ul><li>Chairman & CEO </li></ul><ul><li>Matthew Mecke </li></ul><ul><li>Chief Technology Officer </li></ul><ul><li> </li></ul><ul><li>Director of Business Development </li></ul><ul><li>(TBD) </li></ul><ul><li>Director of Finance </li></ul><ul><li>(TBD) </li></ul>TBD Background in Asian IP credit and debit card processing Interviewing candidates via recruiting firm referrals Corporate accounting and audit liaise outsourced to Saturna Group – Henry Chow
  10. 10. Partners - TAP Group and Wincor-Nixdorf <ul><li>TAP Services (Hong Kong) Limited customers include: </li></ul><ul><ul><li>Watson’s Hong Kong </li></ul></ul><ul><ul><li>Watson’s China </li></ul></ul><ul><ul><li>Park N’ Shop Hong Kong, Macau, & China </li></ul></ul><ul><ul><li>Sogo </li></ul></ul><ul><ul><li>Tesco/Hymall China </li></ul></ul><ul><ul><li>Fortress Hong Kong </li></ul></ul><ul><li>Approx. 3-5 Mln USD Gross Annual Sales </li></ul><ul><li>Wincor-Nixdorf checkout system hardware and cash register </li></ul><ul><li>systems deployed at most of Asia’s 2,000 largest retailer locations </li></ul>
  11. 11. Property of Sino Payments, Inc.. (2010) Sino Payments Investor Presentation January 2010 OTCBB: SNPY