2. CONNECTING ECOMMERCE MERCHANTS TO CHINA

3. THE CHINESE EL DORADO: NEW BUSINESS FRONTIERS

4. As of mid-2013, China's middle class was more than the entire US population. The Bloom of the Middle Class The rapid growth of China's middle class triggers profitable new prospects. Increasing Power. Their purchasing power fuels brand new perspectives for e- commerce merchants. New Business Prospects

5. THE FUTURE OF THE CHINESE MARKET

6. More than 60% of luxury goods, which were once bought abroad, are now locally made - second quarter luxury online sales was 3.45 billion Yuan (Approx. USD 540 million); By 2015, China will have more than 4 million wealthy households, which are households with an annual income higher than 250,000 RMB; (OVER $41000); China will become the world's fourth-largest country of wealthy households after the US, Japan and the UK - in 2006, 1.6 million households fell in the wealthy households category; Chinese shoppers want more unique products, better shopping experience, better customer service and greater convenience.

7. Home Care76.9% Forex & Online Games71.9 % Computer & Electronics65.9% Clothing & Accessories57.1% Stationery57.1% Home Appliances54.9% Top Selling Product Categories

8. THE UNIQUE SELLING PROPOSITION: LACK OF CREDIT CARD COVERAGE IN CHINA

9. 92% of the 1.89 billion cards issued in 2009 were debit cards. 91% of these cards were China Union Card Branded. Credit vs. Debit Cards Currently, most individuals do not own a credit card; instead they use debit cards. The Undisputable Leader. Credit card market penetration is only 20%.

10. PROBLEMS WITH THE CHINESE ECOMMERCE MARKET

11. Cash is the preferred method even today due to low trust in online transactions. Online Purchases Payment Methods Chinese consumers prefer to pay for online purchases by: – Cash (cash on delivery) – Debit card (online transfers) – China Union Pay Card The Undisputable Leader

12. WHAT IS CHINA UNION PAY (CUP)?

13. It is the only domestic bank card organization in the People's Republic of China (PRC), which was founded in 2002. It is fully supported by the Government of China and operates under the approval of the People's Bank of China (PBOC). An association for China's banking card industry, it is a government appointed authority on payments. It is the only interbank network in China (excluding Hong Kong and Macau) that links the ATMs of 14 major and numerous smaller banks throughout mainland China. It is also an EFTPOS (Electronic Funds Transfer at Point of Sale) network.

14. WHAT DOES CUP MEAN FOR MERCHANTS?

15. CUP minimizes the technological investment that merchants need to make to integrate with third party systems. Worldwide Reach CUP lets merchants worldwide transact at ease with Chinese customers. Smaller Investment. CUP integrates merchants with over 200 banks and networks, an expensive and almost impossible task especially for smaller size merchants. Better Integration

16. YOUR TRUSTED CONNECTOR: PAYMATRIX

17. PAYMATRIX is affiliated with China Union Pay (CUP), China's only domestic bank card organization. PAYMATRIX is one of the first payment service providers for international merchants in China. PAYMATRIX, a leader in the e-commerce industry, connects international merchants to the Chinese market. PAYMATRIX enables international merchants to settle and manage their Chinese transactions through web and mobile services. PAYMATRIX’s multinational staff simplify and reduce your transaction time.

18. The Payment Provider to Trust PAYMATRIX is affiliated with China Union Pay (CUP), China's only domestic bank card organization. PAYMATRIX is one of the first payment service providers for international merchants in China. PAYMATRIX, a leader in the e-commerce industry, connects international merchants to the Chinese market. PAYMATRIX enables international merchants to settle and manage their Chinese transactions through web and mobile services. PAYMATRIX’s multinational staff simplify and reduce your transaction time.

19.  Agricultural Bank of China  Bank of Beijing  Bank of China  Bank of Communications  Bank of Nanjing  Bank of Shanghai  HSBC Partner Banks

20. Phone Office Toll-free: + 357 2200 7116 Mail bizdev@paymatrix.com

21. THANK YOU!