Esprit Financial Group,
Inc. announced it has signed an Agreement
in Principle with International Express Payment (Jiangxi) Corp. Esprit is
to provide advanced electronic funds management services (EM2) to Jiangxi’s
current customer base and its network of over 20 Chinese-based banks.
Jiangxi operates a proprietary Chinese based “closed loop payment
system” which works similar to a Paypal type online payment service.
Jiangxi, currently has contractual agreements with 21 Chinese based banks,
providing internet-enabled payment systems, on their proprietary closed
loop payment system. This current closed loop payment system provides
services restricted to member banks and merchants whose customers subscribe
to Jiangxi system. Currently, services are limited to electronic funds
transfer within this closed loop system.
With this new Agreement, Esprit will greatly expand Jiangxi’s service
capability from a ‘closed loop’ to an ‘open loop’ system that can access a
much larger pool of international banks and financial institutions.
Esprit’s Advanced Electronic Funds Management products, particularly EM2
and prepaid branded credit and debit card products greatly add service
capabilities in demand by Jiangxi’s customers. With Esprit’s international
financial services capabilities, clients will enjoy a competitive
differential advantage versus other China-based ‘closed loop’ electronic
payment providers.
The agreement covers current clients as well as any additional banks
that may come on-stream to the current closed loop payment system. The
partial list of member banks includes:
– Bank of China
– Bank of Beijing
– Agricultural Bank of China
– ICBC
– China Merchants Bank
– China Everbright Bank
– Industrial Bank Co., Ltd
– China Construction Bank
The agreement specifies that all revenue derived from this agreement
will be split on an equal 50%/50% basis between the two parties. Both
parties have agreed that this joint project shall commence immediately on
execution of the agreement. Forward looking revenue projections for this
service shows possible revenue streams on a conservative outlook basis of
about 3 million dollars annually to an optimistic outlook of as much as 10
million dollars annually. The evergreen or recurring revenue stream may
have a life cycle for as much as 7 to 15 years. We plan on posting our
forward looking projections of this joint project in the Town Hall in the
near future.
Jack Chang, head of the AEFM division, has said “Esprit will deploy our
proprietary EM2 money transfer system onto Jiangxi’s existing ‘closed loop’
network providing a tremendous improvement in service capabilities.
Existing Jiangxi customers will still enjoy all the benefits associated
with the current system, but will now have a greatly expanded number of
payment and funds transfer capabilities on a truly international basis.
Esprit CEO Garr Winters notes; “This is the first of many financial
contracts which we anticipate signing as the Company moves forward. This
demonstrates proof of concept regarding the capabilities of our new AEFM
division headed by Jack Chang. Jiangxi has recognized that our capabilities
are right at the leading edge of international funds management, and that
there is more to be gained by working with us on a joint venture basis than
by trying to build an open international funds network themselves”.
Winters added: “With the 2008 Olympics quickly approaching we realize
that time is of the essence. We see a huge opportunity and are eager to tap
into this surge of new users. Our agreement calls for a rapid forward
implementation of the open loop payment system. Jiangxi has confirmed to
the Esprit management that the member banks will start actively promoting
the EM2 open loop payment system to their customers and Jiangxi will work
with Esprit to market these new service capabilities to Jiangxi’s installed
customer base.
About International Express Payment (Jiangxi) Corp.
Jiangxi is the leading online payment platform in China. Owned and
operated by International Express Payment Corporation, it utilizes and
integrates the world leading online technology and banking facilities. 21
major banks in China have signed payment agreements with Jiangxi. The
company is dedicated to providing secure and efficient customer services
for online payment transaction and has established operational strategic
partnerships with these financial institutions offering online payment
services. Jiangxi services currently cover over 2.7 billion domestic and
international bank cards.
About Esprit Financial Group Inc.
Esprit Financial Group Inc, is a public company engaged in a
diversified number of online financial services.
PayDay Loans: The Company is a pioneer in the payday loan industry, and
continues to develop the most comprehensive menu of services in the cash
advance industry and will retain the Cash Now brand for many of these
services. Operations include licensing of a comprehensive suite of
Internet-based payday loan and check cashing software and private label
back end office systems for the sub prime market, under the Cash Now banner
http://www.cashnow.org. The Company also operates
http://www.cashnow.net, which generates
leads of consumers looking for payday loans on behalf of our licensees. The
company’s proven business model comprises operations in the U.S. and
Canadian markets as well as several foreign markets. Additionally, the
Company’s website is the most advanced payday-lending portal, offering key
insight to clients and potential clients alike.
Forex: Additionally, the Company’s Forex Trading division offers an
innovative low-cost online Forex trading service at
http://www.cashnow.com. The
Company acts as an Introducing Broker for Advanced Markets, Inc., and is
targeted to serious day traders. All transactions are handled on a
streaming pass-through basis. There is no trading desk, and no manipulation
of quotes that lag the actual interbank market. Importantly, traders can
continue to trade actively even during volatile periods that result from
major news events of publishing of market reports.
Advanced Electronic Funds Management: The Company’s Advanced Electronic
Funds Management (AEFM) division offers Cash Now Check 21 – an advanced
checking clearing service that can significantly reduced holdback periods
by banking institutions, particularly valuable for international markets.
Its EM2 (Electronic Money Management System) product is a comprehensive
e-wallet capable of managing multiple bank accounts, remitting funds
worldwide and provide banking capabilities to consumers without requiring
that they have a bank account.
Structured Debt Resolution: This division will offer services that
allow banks, financial institutions and other creditors to invite defaulted
clients to negotiate a settlement online, in a neutral and
non-confrontational manner, bypassing traditional collection calls and mail
delivered notices of default.
