Introduction

EDP Technologies Corporation (“EDebitPay” or “EDP” or the “Company”) is a leading performance-based online affiliate and direct marketing services provider to the sub-prime consumer market.  The Company is a pioneer in the online financial services industry and is currently the largest on-line marketer of prepaid debit cards.  EDP is the only company successfully combining these three attractive characteristics:

Addressing a large, underserved target market: under-banked, sub-prime consumer

Providing products and services in high demand: prepaid debit cards and trusted continuity service

Leveraging the most effective distribution channel: online affiliate marketing networks.

Target Market

The Company’s products and services capitalize on the increasing popularity of prepaid debit cards.  Prepaid debit cards were used for an estimated $25 billion of transactions in 2005 and are held by 80 million people who are part of an underserved, under-banked sub-prime market with collective earnings of over $1 trillion per year.  The Company’s products are targeted to the under-banked portion of this market, which represents an estimated 45 million people earning over $580 billion annually.  The Company is one of the original online prepaid debit card providers to the sub-prime market, and has established many processes that are now regarded as industry standards.  The adoption of the Company’s products provides a unique channel by which to reach this market segment through the use of its affiliate marketing network. 

Products and Services

EDP’s prepaid debit cards and financial services provide customers “bank-like” functionality, including a convenient way to make purchases, telephone and online account monitoring, electronic transfers and direct deposit functionality.  By leveraging its long-standing relationship with the Visa and MasterCard brands, adoption rates for the Company’s products and services are among the highest in industry.  In addition to its debit cards, the Company markets a suite of proprietary continuity services, including a healthcare discount service, roadside assistance and credit-building services.

Affiliate Network

The Company’s affiliate network, EDebitPay, is robust and highly diversified, consisting of other affiliate networks, affiliate marketers, independent and affiliated publishers, as well as online and offline list managers.  EDP has relationships with the top 50 online affiliate networks and affiliate marketers in the U.S., encompassing tens of thousands of publishers that provide a powerful distribution channel for its products and services.  The Company estimates that they are able to reach over 30 million unique users per month through their extensive affiliate network.

The personal information volunteered by prepaid debit applicants has proved valuable to both the Company and its affiliate network.  Through the debit card application process and subsequent card activity, consumers provide valuable profile and card usage data and opt-in to receive targeted marketing offers. 
The Company’s depth of knowledge in the sub-prime market segment, its proprietary marketing platform and processes and its ability to manage and monetize its valuable consumer data with targeted online marketing campaigns provides for industry leading conversion rates and ROIs for its advertisers and affiliate partners.  The Company monetizes its opt-in consumer data through the following methods: 

• Marketing its own services and third-party offerings through its affiliate network.
• Participating in revenue sharing programs with other online affiliate partners.
• Selling consumer profiles to offline list managers.

Key Success Factors

The growth of EDP’s proprietary offerings and success of its affiliate network can be attributed to the following factors:

• An efficient and effective channel to target an extremely valuable, underserved and under-banked sub-prime market.
• Strategic relationships established with Visa and MasterCard and the attendant brand awareness and trust associated with those brands. 
• Ownership and control over all aspects of EDP’s proprietary products and services.

With its scaleable array of financial services and solutions, EDP is uniquely positioned and prepared for the attractive growth opportunities presented by the sub-prime consumer market.

www.edebitpay.com

Employees

EDebitPay currently has 46 employees consisting of nineteen in customer service, eight in sales and marketing, 6 in research and development, six in operations / email operations and seven in general and administration.

Business Model

EDebitPay uses its robust affiliate network, EDebitPay.Net, to market its debit card offerings through affiliate marketers, affiliate networks and publishers.  The Company estimates that it reaches 30 million unique consumers per month through its network.  Targeted sub-prime consumers are directed to one of the Company’s card websites (landing pages) to complete an application and purchase a card.  Upon the submission of an application, EDebitPay is immediately able to monetize all consumer data whether or not the application is accepted or even complete.  Applications are accepted if they are properly completed, and the consumers have sufficient funds and pass through EDebitPay’s security and identity checks. 

Expand Continuity Program Subscription Revenue 

EDebitPay believes that there are many opportunities to grow its continuity subscription revenue base.  This revenue represents a high-margin, recurring revenue stream.  The Company plans to increase its subscription revenue through the introduction of new Executive Benefit programs, an increase debit card sales resulting in more available consumer profiles and a focus on improving the attachment rates on these new sales.

Expand Third Party Offerings

Currently, EDebitPay markets AIG’s Identity Theft Insurance product through its affiliate network.  The Company believes that the breadth of its marketing platform combined with the high attachment rates associated with the sale of debit cards provide the Company with an ideal platform for the marketing and sale of other financial services such as cash advances, mortgages or auto loans.

Better Leverage of Consumer Usage Data

Through the tracking of its consumers’ debit card purchases, the Company collects extremely valuable consumer spending habits.  To date, EDP has not fully-exploited the leverage of this data throughout its marketing programs, either in aggregate or by individual consumer.  As its card usage and marketing programs mature, the Company expects to realize significant benefit from this under-monetized asset.

Extend Marketing Channels 

Currently, the Company markets its products and services exclusively online.  The Company plans to explore other marketing channels for its proprietary products and services, such as direct mail, telemarketing, payroll cards and retail.  The Company intends to explore several partnership opportunities to identify the potential of these distribution channels.