Sino Payments has completed many hundreds of test transactions primarily in June and July on the demo/test Sino Payments ecommerce gateway platform in anticipation of live transactions for our initial merchant clients. There were no errors or other problems identified with any transactions during this test period.
We are waiting on final bank approval for first merchants which we anticipate will be done soon. The delays have not been positive but during this time we have received several additional applications for approx. 12-15 mln USD per month (in total) from merchants which we are working with. We are also concurrently working with our banking partners so we can complete the merchant application process and receive approvals or declines for these merchants. If any of these merchants are declined we have back up solutions with other banks and/or related providers we can then discuss these accounts with to try to work out final approval and account setup.
The pace of new merchant applications on a weekly basis has been increasing steadily over the last 2 months and is higher now than at any time in the past as of this current week. The pace of additional new merchant applications is quickening.
In addition we are getting strong initial feedback on our business development efforts in new Europe, Thailand, and to a lesser degree in the Greater China region for large physical store chains. We are pursuing these opportunities and hope to have news we can release along these lines soon.
The Board and others involved in Sino Payments see a bright medium and long term future as we build out and hope to put the kick off delays and prep stage timing issues behind us soonest.
Matthew Mecke
Chairman
Sino Payments, Inc.
I have received several questions from Sino Payments shareholders and investors.
First Question: Where is the Revenue?
Answer:
The merchant processing process typically takes 4-8 weeks from the day the initial merchant documents are submitted to the banks that Sino Payments has a referral agency with. That being said, we do have 2 signed referrral bank agreements and have 2 others in the pipeline.
The process to setup a bank referral agreement can take 2-3 months.
We started submitting a handful of merchant applications about 2 months ago to our Bank partners and have been working with them daily/weekly to clear any questions they may have and to push towards approval of merchant accounts. We expect to receive the first merchant account approvals this month (May 2010) and then to work with our merchants to complete the technical setup and implementation.
The technical merchant setup and implementation can take between 1-3 weeks.
We have received inquiries and have submitted related applications that could end up processing up to 12mln USD per month and we continue to work with some large and some small merchants to submit additional applications.
We expect to process enough in terms of monthly merchant volume to achieve operating profit on a monthly basis before the end of 2010. This level for us is roughly 5-7mln USD per month.
The first step for Sino Payments is to integrate and “go live” with our first batch of merchants and then process 5-7 mln a month to generate profit on an ongoing month to month basis. Once done I have many larger projects in the works.
We also intend to ramp up Sales and Marketing through this summer and have already retained one Business Development Consultant based in Hong Kong for that purpose. We have received credible results and expect this pipeline to contribute in the future to explosive growth for Sino Payments.
Matthew Mecke
Chairman
Sino Payments, Inc.
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