A bit out of the blue: GoConnect Limited and Priority One...

A bit out of the blue

: GoConnect Limited and Priority One Network Group Limited execute binding Master Merchant
Agreement with International Payment Solutions (Hong Kong) Ltd (“IPS”) to enable the
promotion and release of Debit card accounts in The People’s Republic of China

from the announcement
"IPS have advised they are currently in negotiation with a number of China’s largest banking institutions for
the purposes of providing card issuing and account management services for the Priority One Debit Card
product. Directors expect these negotiations will enable a significant rollout of Priority One Debit accounts
into China.

then
By the end of 2010, there were 2.4 billion credit and debit cards in circulation in China, more than twice the
number in use in the United States. Spending on cards reached close to half that in the U.S. The growth rate
of the credit card market has decreased from a couple of years ago. Credit card issuers, under increased
pressure to be profitable, are taking a more conservative approach. The debit card market, however,
continues to record strong growth. On average, an adult in China carried 2.2 debit cards at the end of 2010, a
year in which the total number of debit cards increased by 16.2 per cent and spending on debit cards grew
an estimated 47.5 per cent. Online payment and mobile payment are growing rapidly as more consumers
find online shopping convenient and safe. Payment service providers are also working hard to bring better
products and services to the market.
Against this very positive trend of debit card growth in China, GoConnect and Priority One consider their
new relationship with IPS, established at the perfect time in the Chinese e-commerce market, as a key
component of driving growth in Chinese consumer and merchant uptake of its value-plus e-commerce
services. IPS’s well entrenched position within the Chinese e-commerce market, coupled with the cash
rebate and benefits package associated with the Priority One Debit Card, will facilitate strong growth in the
Priority One Debit Card uptake as well as driving commercial opportunities for Priority One GoConnect
China Group Ltd in the near term.