NEWSLETTER PAX TECHNOLOGY. March Your Payment Partner of Choice

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1 Your Payment Partner of Choice March 2014

2 Your Payment Partner of Choice March 2014 S-Series Products S800 Countertop Payment Terminal S900 Mobile Payment Terminal S300 Integrated Retail PINpad Secure Platform, optional Linux operating system PCI PTS 3.x Contactless / NFC Faster processors, ARM11 > 400MHz 192MB memory capacity Color screen displays Flexibility with USB ports Connectivity - Dial-up, Ethernet, 3G (WCDMA)

3 Coming Events MPOS Solutions TRANSACT 2014 April 8-10 Las Vegas, USA RetailNOW 2014 August, 2014 Orlando, FL D180 D200 D210 SmartCards Expo 2014 October New Delhi, India PAX offers a suite of MPOS products such as the D180, D200 and D210. These compact high quality devices come with the latest international certifications including Visa paywave and MasterCard PayPass, PCI PTS 3.x, SRED & EMV Levels 1 & 2. CARTES 2014 November 4-6 Paris, France Payment initiated by mobile applications on smart devices can be completed on the PAX MPOS devices via EMV smart card reader, magnetic stripe or inbuilt contactless. Multiple connectivity options include Wi-Fi, Bluetooth, GPRS and USB cable. PAX s MPOS terminals are MFi certified by Apple Inc. for use with ipad, iphone and any Android smart device. Visa paywave & MasterCard PayPass for D200 & D210 Wi-Fi, Bluetooth, GPRS for D200 & D210; Bluetooth & USB for D180

4 Market Spotlights EMV IS FULL STEAM AHEAD IN THE USA With the recent card breaches with Target and other retailers, Visa and MasterCard have reiterated they are not backing down on EMV implementation in the USA. the POS / ECR is still responsible for the payment processing consequently requiring them to see the card data and other sensitive information. This draws them into the scope of PCI. Integrating to the PAX SP30 and MT30 PIN Pads allows POSBank and LOC to take their systems out of PCI scope. With the fully PCI certified PAX device taking care of the payment processing, all the POS / ECR has to do is send the amount to the PIN pad and the PIN pad takes over all the prompting and transaction processing thus eliminate the need for the POS / ECR to ever see the sensitive cardholder data. PAX PROVIDES SEAMLESS MOVE TO PCI 3.x FOR ITS CUSTOMERS IN THE USA PAX thinks about the ease of upgrading when it comes to their customers. The size of some of the recent USA breaches puts a spotlight on payments, but everyone should be reviewing their payment systems at all times to make sure they are handling transactions in a secure way. It doesn t matter how large of a business you are, consumers need to feel comfortable when they pay with a credit or debit card in any type of environment. PAX has provided the same terminal products, with the same certified processor applications, and upgraded to PCI 3.x so the transition to the more secure PCI status is easy. PAX JOINS EMVCo ASSOCIATE PROGRAMME PAX is one of nine new organizations that will actively participate in discussions to manage and evolve EMV Specifications. PAX has joined as a Technical Associate and will focus on making contributions to technical and operational issues connected to EMV Specifications and related processes. UNICREDIT BANK IN ITALY SELECTS PAX PAX COMPLETES INTEGRATIONS WITH POSBANK AND LOC SOFTWARE With all the buzz about the credit card breaches in the USA, PAX works with POSBank and LOC Software to take their POS systems out of PCI scope. POSBank and LOC know that the way to avoid PCI problems is to not get anywhere close to the sensitive cardholder data. Most POS / ECR systems use a simple card reader and PAX Italia has obtained full CB2 certification from the Consorzio Bancomat and UniCredit, a major pan-european bank, has chosen to deploy PAX terminals in Italy. Quercia Software, the bank's innovative payments technology division, are thus introducing a much needed competitive option in the Italian market.

5 EMV PETROLEUM SOLUTION MicroSys is an innovative PAX based solution from our Portuguese channel partner Petrotec. Fuel attendants manage the petrol pump directly from the PAX S800 terminal. Authorising the pump, retrieving dispenser transactions, closing & opening shifts are just some of the functions available with this cost-effective automation solution. PAX IN FORBES ASIA S BEST UNDER A BILLION LIST PAX has been listed in Forbes "Asia's 200 Best Under A Billion". This award truly reflects the exemplary performance of PAX in electronic payment fields. PAX has a very focused product roadmap, and continues to provide innovative, cost effective and superior quality products and services to clients worldwide. APPLE ISSUES MFI CERTIFICATION FOR PAX TECHNOLOGY MPOS TERMINALS Apple has granted MFi certification for PAX s innovative portfolio of compact MPOS terminals D200, D210 which can now be used with iphone, ipad and other mobile devices running payment applications. MASTERCARD MPOS PROGRAM PAX COORPERATES WITH CHINA UNIONPAY MERCHANT SERVICES FOR POS SOLUTIONS China Unionpay Merchant Services (UMS) has selected PAX as its major supplier for its 2014 POS solutions. PAX has been UMS business partner since PAX will provide UMS with payment devices including the full range of countertop, portable, MIS PIN Pad, mobile and wireless terminals, which fully meet the highest international standards of secure payment PCI PTS 3.x, EMV certifications. PAX s D200 MPOS & D210 terminals have been successfully registered as the MPOS solution in the MasterCard Mobile Point-Of-Sale Program. PAX MPOS PORTFOLIO IS VISA READY S80 S90 SP30 PAX s D200 MPOS & D210 have been successfully approved in the VISA READY program.

6 Market Spotlights PAX GROWS BRAZILIAN MARKET WITH UOL PAX expands its Brazilian market presence by establishing a partnership with UOL, the leading internet services and online content company in Brazil. UOL will leverage its more than 40,000 retail POS software customers portfolio to deploy PAX's D200 to accept credit and debit card payments. BANRISUL LAUNCHES MOBILE PAYMENT SOLUTION WITH PAX D200 MPOS PAX and Banrisul, a leading Brazilian Bank, announced the launching of Brazil s first mobile payment solution using the D200 MPOS. Banrisul s solution integrates with the D200 which comes with a suite of certifications, including PCI PTS 3.x, EMV, MasterCard PayPass, Visa paywave and Apple s MFi approval. CIELO SELECTS PAX MPOS SOLUTION PAX supplied the D200 MPOS device to Cielo Mobile Solution, the first company in Brazil s market to offer debit card & voucher payment methods, as well as Credit function in up to 48 installments, via Chip & PIN transactions. Autonomous professionals, small entrepreneurs and merchants rely on the D200, connected to smartphone or tablet via Bluetooth. For cardholders, the advantage is the peace of mind when typing passwords in the D200, increasing the perception of security. INDONESIA'S BANK MANDIRI SELECTS PAX PAX has secured a tender with Bank Mandiri in Indonesia to provide 10,000 units of contactless R50 readers. The R50 complies with the latest payment standards in accordance with Visa and MasterCard, furthermore, it enhances payment experience, and customer loyalty by incorporating contactless credit card, prepaid and debit solutions. Contact Corporate Headquarters 4/F, No.3 Building, Software Park, 2nd Central Science-Tech Road, High-Tech Industrial Park, Shenzhen , China T: E: market@paxsz.com North America 4901 Belfort Road Suite 130, Jacksonville, FL USA T: E:inquiry@pax.us Asia Pacific Room 2416, 24/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong T: E: market@paxsz.com Europe Middle East Africa Portland House 16th Floor Bressenden Place London SW1E 5RS United Kingdom T: +44 (0) E: sales@paxemea.com Latin America - CIS 4/F, No.3 Building, Software Park, 2nd Central Science-Tech Road, High-Tech Industrial Park, Shenzhen , China T: E: lacis@paxsz.com