Maverick China Payment Profiles: IPS, In the Money Through a Merchant Focus

1 Industry Overview: Key Factors Shaping Third-Party Payments in China

1.1 Continued preference for cash payments, but bank card payments rising

1.2 Credit card use remains low; debit cards widespread

1.3 Limited coverage of non-cash payment services

1.4 China UnionPay's bank card monopoly

1.5 Quasi-online payment systems an interim solution

1.6 Two ISPs, 162 million Internet users

1.7 Two mobile operators, 500 million subscribers

1.8 Contactless smartcard use increasing but largely limited to buses and subways

1.9 Government regulations and the ""national interest""

2 IPS - In the Money Through a Merchant Focus

2.1 Company Overview

2.1.1 Ownership

2.1.2 Organizational Structure

2.1.3 Management Team

2.2 Business Performance

2.2.1 Financial Performance

2.2.2 Users

2.3 Services and Channels

2.3.1 Business & Operation Model

2.4 Markets and Coverage

2.5 Marketing and Branding

2.6 Partnerships

2.6.1 Bank Partners

2.6.2 Merchant Partners

2.6.3 Technology Partners

2.7 Competitive Analysis

2.7.1 Strengths

2.7.2 Weaknesses

2.8 Outlook

List of Figures

Figure 1: Credit cards issued in China and in the US (M)

Figure 2: Internet Users in China, 2001-2006 (M)

Figure 3: Mobile Subscribers in China, 2002-2010F (M)

Figure 4: China government groups involved in third-party payment regulation

Figure 5: Universal Technology Holdings Company Structure

Figure 6: IPS Management team

Figure 7: IPS Annual Transaction Volume, 2001-3Q2007 (RMB M)

Figure 8: IPS Annual Number of Transactions, 2003-2006 (M)

Figure 9: IPS Average Transaction Size (RMB)

Figure 10: IPS Fee Structure for Merchant Partners

Figure 11: IPS Operation Model

Figure 12: IPS Payment Service Coverage by Channel

Figure 13: IPS logo

Figure 14: IPS Bank Partners

Figure 15: Select IPS Merchant Partners