Welcome to

About
Established in 2009, PNI is a Payment Services Provider (PSP)
with a proprietary suite of e-commerce and general payment
processing solutions.
Our core services include:
• Virtual terminal processing (MOTO – Mail Order / Telephone Order)
• Credit and debit card processing:
Visa, MasterCard, UnionPay, JCB, Switch, Solo, Amex, Discover
• Multiple currency processing: € £ $ ¥
• ACH/eCheck processing (US customers)
• Payment gateway services (PCI DSS Certified Level 1)
With connectivity to more than 80 banks and direct gateway connections into
various card associations worldwide, PNI supports companies of all sizes to
accept payments in all major currencies.

Corporate Structure

Core Brands and Companies
PNI is the parent company.
China Payment Services (CPS) provides payment solutions for
international online businesses selling into China, as well as
payment solutions for companies within China.
Velotran is a low risk merchant service entity that provide merchant
services to low risk merchants in the USA, including both Point of
Sale (POS) and Card Not Present (CNP) solutions. Velotran is also
presently planned as the low risk service for the United Kingdom
and Australia.
Payconnector is a white label gateway system which can be used
by merchant service companies worldwide, with their own custom
design.

Key Company Milestones
2009
July PNI Group founded
September Certified PCI DSS (Tier 1) compliant
2010
January Established eCheck Processing Facility
May Small E-money Issuer Certificate granted by the Financial Services Authority
(FSA) UK
September Wells Fargo Bank sponsored ISO registration
October Integrated directly into MasterCard’s Gateway (MiGS)
2011
April Global Payments Agreement
August UnionPay/ChinaPay First and Second Agreement
September Planet Payments Agreement
November Australian Financial Services Licence granted by ASIC (Australia)

Global Coverage

Value Proposition
• Leading proprietary developed gateway technology with an advanced user interface
• Multi dimensional services
 Card not Present (CNP) Solutions
 Point of Sale (POS) Solutions
 Dynamic Currency Conversion (DCC) and Multi-Currency
 Bespoke and white label solution flexibility
• Proven experience in large scale and complex solution requirements
• Unified global platform scalable across all countries and currencies
• Advanced web based reporting
• Multi-regional capability
• Multiple integration options
• Recurring payment support
• VbV, SecureCode support

Low Risk Versus High Risk
What – makes them High Risk?
Non tangible goods, recurring billing, high ticket items, industries prone to
fraud, service or legal issues. E.g. nutraceuticals, travel
Where – are they located?
Certain counties have been identified as being more ‘High Risk’ than others
by the Banks and card associations. E.g. India,
How – do we manage the High Risk accounts?
We have strict controls on our internal fraud screening tools/systems to ensure we are monitoring the
transactions of each Merchant closely. This enables us to watch for any irregular patterns which may be
pointing towards fraudulent behaviour very quickly and to shut the account down to prevent losses for
us, the Merchant and the customer. We also have a 24/7 support phone line for Customers to call if they
are concerned with a transaction appearing on their credit card statement. We offer an immediate refund
policy for the customer.
Why – are we taking on businesses in the High Risk area?
There are good, clean Merchants processing in this space who need an outlet to conduct their business.
The margins on processing high risk merchants are far higher than for low risk.

Core Intellectual Property
The Gateway
99.999% Reliability - Reliability is assured with extensive multiple
redundant topology and disaster recovery hosting solutions.
PCI DSS Level One - Certified as PCI DSS Level One Compliant
• Founded by American Express, Discover Financial Services, JCB
International, MasterCard Worldwide, and Visa Inc.
• Strict change control with emphasis on accountability and chain of
command.
• Independent 3rd Party performs annual reviews:
 Onsite Audit: processes, security awareness
 Ethical Hacking / Internal and External Penetration Tests
The proprietary PayConnector processing gateway and our
specialised service is responsible for:
• Multiple bank connectivity
• Front end authorisations
• Back end settlement
• Customer payment support systems
• Risk management & fraud control
• Real time customizable reporting

How it Works
Transaction Flow

How it Works
Traditional Model

How it Works
White Label Model

Gateway White Labels

Advanced Fraud Prevention System
Risk exposure and costly fraud is greatly reduced with a
leading suite of detection and prevention tools which include:
• Support for address verification (AVS) and card security codes (CVV)
• Blacklisting and white-listing of cards and IP addresses
• Blocked countries by location of payment request or origin of card
• Blocked transactions using credit card negative databases
• Checks against comprehensive known fraudsters database
• Limits on the maximum number of transaction attempts
• Reverse telephone number look-up matched to cardholder address
• Geo-locating of transaction IP address matched to cardholder address
• PC finger printing

Fraud Screening
• Multi stage screening process
 Stages and checks run in parallel for speed and load balancing
• Identify key fraud indicators
 Customer/Computer/IP Address/Country History
 Known fraud patterns
• Score based system
 Transactions blocked or sent to manual review
Global Configuration or per Account
Stage 1: Validation
Merchant/Customer History

Fraud Screening
Stage 2: Blacklist
Comprehensive database built on our history of processing

Fraud Screening
Stage 3: Pre-Authorisation Transaction Scoring

Fraud Screening
Post-Authorisation Stages: Refund Queue

Australian Financial Services Licence (AFSL)
• ASIC has granted PNI Financial Services Pty Ltd an Australian Financial Services
Licence as of Tuesday the 8th November
• PNI Financial Services (and its authorized representatives) can now provide general
advice and deal in non-cash payment products including gateway processing
services, e-wallet and payment cards to Australian merchants and Australian
cardholders
• PNI’s business underwent rigorous assessment with ASIC and granting of the AFSL is
recognition that people and processes in place are of a high calibre

PNI’s Focus on China
In 2010 PNI started researching opportunities for providing payment solutions for China. The scale of
payment processing related to China are enormous, especially given the rapid increase in eCommerce
business within China. For this reason PNI is prioritising the development of payment products for China.
Sample statistics and facts showing the scale and potential include:
• China is already the 2nd biggest consumer of luxury goods in the world
• China has over 500 million internet users (more internet users than the USA and Europe combined)
• China’s eCommerce volume in 2010 was 703 billion USD, by 2015 it is expected to reach 2.8 trillion
USD
• The Chinese government is actively working to promote ecommerce growth and development

CPS Partnered With ChinaPay
China UnionPay (CUP) is the central interbank debit card and credit card platform in
China. All cards issued in China bear the UnionPay logo and China UnionPay is the
largest globally recognised payment brand based in China. ChinaPay is the third party
payments arm of CUP and hold a non-financial third party payments licence by The
People’s Bank of China (PBOC). They are a profitable entity, which is unique in the
marketplace.
• UnionPay Trust – Especially within the luxury brands market, shoppers
prefer to purchase with a trusted brand. Being government owned and on all
Chinese cards helps build consumer trust.
• Global Experience – UnionPay has a rapidly spreading global presence and
systems development, which places ChinaPay in a leading position to
support global companies. CPS is helping to fill the gaps and provide a true
global support system.
• B2C Market Share - In terms of market share in the B2C market, ChinaPay
is on an equal footing with Alipay, the largest direct competitor in the market.
• Superior Support – Our experience shows that companies making a healthy
profit in China provide better support. ChinaPay has made healthy profits for
the last three years.
• Foreign Currency Settlement – Due to the unique ownership structure of
ChinaPay and the relationship with The People’s Bank of China, it is easier to
facilitate cross border settlement.

eCommerce
Payment Flow

CPS Agreement Summaries
ChinaPay Agreement 1 - Aggregate Solution
• Aggregate solution ideal for small-to-medium sized merchants located overseas
• Merchants connect to aggregate ChinaPay MID via CPS gateway
• ChinaPay settles all funds to CPS & CPS settles to merchants, less its fees
ChinaPay Agreement 2 – Sales Partner
• Dedicated solution ideal for larger merchants located in China or looking to move into China
• CPS acts as ChinaPay’s official sales partner
• Merchants connects to its own dedicated ChinaPay MID
• ChinaPay settles funds directly to Merchants and CPS receives percentage of Merchant
transaction volume
ChinaPay Agreement 3 – E-wallet
• Cooperation to develop global e-wallet system targeted on Chinese cross-border business
• E-wallet will allow ease of Chinese cross-border ecommerce transactions
• Significant development, infrastructure and investment
• Timeline and agreements to be negotiated

English
Checkout Page
Customer selects
payment method
If they choose UnionPay
they are redirected to
a hosted currency
conversion page or bank
selection page depending
on your chosen currency
setup

Hosted Redirect
Currency Confirmation Page
USD to RMB
Currency Example
This page is only presented
first when the sale
currency is not RMB.
The customer confirms
the amount they will be
deducted in RMB.

ChinaPay
Bank Selection Page
The customer then
chooses which bank
they wish to pay via.
They authorise the
Payment with their
own bank and will
get a payment
success page
before being
redirected back to
your website.
This is the standard
online payment
process in China.

Bank Selection Page
Example from Japan
Airlines (JAL)

CPS Secure Administration
The Dashboard
Contains Sample
Data Only

CPS Secure Administration
Transaction
Details
Contains Sample
Data Only

CPS Secure Administration
Transaction
Customer
Details
Contains Sample
Data Only

Revenue Models
Gateway Only Service (e.g. Payconnector)
• Basic transaction processing fee 10 – 20 cents per transaction
• Fraud check fee 5 – 10 cents per transaction
Low Risk Merchant Processing (e.g. Velotran)
• Basic transaction processing fee 10 – 20 cents per transaction
• Fraud check fee 5 – 10 cents per transaction
• Merchant facility fee 0.10% - 0.60% of volume
High Risk Merchant Processing
• Basic transaction processing fee 10 – 20 cents per transaction
• Fraud check fee 5 – 10 cents per transaction
• Merchant facility fee 0.60% - 5.0% of volume
• Chargeback fee $20 - $30 per per chargeback
• Refund fee $1.00 - $2.00 per refund
Third Party Aggregate Service (e.g. CPS)
• Basic transaction processing rate 0.50% - 1.8% of volume

Group Sales & Revenue Forecast

Thank you for your time