IPSHK-Priority One GoConnect China MOU Directors of GoConnect Ltd ("GCN") and Priority One Network Group Ltd ("Priority One") are pleased to advise that their associate company Priority One GoConnect China Group Ltd ("Priority One GoConnect China"), has entered into a Memorandum of Understanding ("MOU") with International Payment Solutions (Hong Kong) Ltd ("IPSHK"). GCN and Priority One each holds a 40% interest in Priority One GoConnect China. IPSHK is a subsidiary of Universal Technologies Ltd listed on the Hong Kong Stock Exchange (Stock Code: 1026 HK). Under the MOU, IPSHK and Priority One GoConnect China plan to establish an equal strategic partnership for the introduction and promotion of Priority One Program and Priority One Debit Card to the Greater China region including Hong Kong and Macau (“Greater China”) and other Asian countries, The strategic partnership will generate revenue from share of membership fees, share of transaction fees and commissions on sale of goods and services. The partnership will also be actively encouraging and promoting cross-border online e-commerce between customers of Priority One merchants in the West and merchant clients of IPS in Greater China. Total e-commerce transaction value in China for the year to June 2012 is estimated conservatively at US$352 Billion and expanding rapidly. Payment gateway normally charges 3% for each debit card transaction and a higher percentage for credit card transaction. Since September 2010, a payment gateway company operating in China must be licensed by the Chinese Government. IPS Shanghai operates the third largest online payment gateway in Greater China.
GCN Price at posting:
4.8¢ Sentiment: Hold Disclosure: Held
