SECTION 1 -

• gift vouchers for businesses and consumers;
• prepaid cards used by public authorities for in benefits programs;
• professional expense management;
• insurance cards that enable policy holders to receive claim settlements; and
• UUB cards for under‐ and un‐banked persons.
PrePay Solutions may charge a fixed fee for the design and launch of a prepaid program
and/or a commission based on the use of the program once operational (transactions, card activation,
reloading, cancellation, etc.).
(ii) Issuance of regulated electronic (e‐money) products
PrePay Solutions is an e‐money issuer authorized by the U.K. Financial Services Authority (the
FSA) to issue prepaid products qualifying as electronic money, such as UUB cards in the United
Kingdom, under the Electronic Money Directive and the New Electronic Money Directive (see section
1.11.2 of this prospectus for a detailed description of these directives). This status gives PrePay
Solutions a significant competitive edge because it allows PrePay Solutions to offer products that,
under European rules, may only be provided by issuers that are approved by the regulatory authority
of the country where the products are sold. As an e‐money issuer, PrePay Solutions can offer
regulated products in any European country upon written request to the FSA, under the European
mutual recognition regulatory ‘passport’. PrePay Solutions is already authorized to issue regulated
electronic products in 17 European countries and could rapidly extend its product offer in this area to
other countries in Europe. PrePay Solutions systems have a capacity of tens of millions of cards.
(iii) Access to MasterCard’s payment processing infrastructure in Europe
The partnership between PrePay Solutions and MasterCard allows New Services’ card‐based
products to benefit from MasterCard’s European filtered‐loop infrastructure for payment processing,
a secure network with several million payment terminals. This system allows affiliated merchants to
use their MasterCard payment terminals to accept New Services cards, without additional investment.
A filter application operated by PrePay Solutions identifies merchants as New Services affiliated
merchants as part of the transaction authorization process.
Together with New Services, PrePay Solutions has already launched gift cards and prepaid
card solutions for employees in Germany, Poland, Belgium and Luxembourg, as well as in the Czech
Republic, Hungary and Slovakia. New Services expects to extend this European cooperative
relationship to new products in the future.
With PrePay Solutions, New Services is accelerating the shift to electronic prepaid payment
solutions with the goal of becoming the leading provider of prepaid solutions in Europe.
1.6.2 The WATTS system
In 2007, New Services created the WATTS system (Worldwide New Services Transactional
Ticket Software), which allows New Services to manage its paperless transactions, particularly in Brazil
where payment authorization for Tickets Restaurant ® , Tickets Car ® and Tickets Alimentación ® are
processed using WATTS.
WATTS is now able to manage New Services' card applications throughout Latin America. Its
use outside of Brazil, beginning in 2008 the launch of the Ticket JUNAEB ® in Chile, continued in 2009
with the launch of the Ticket Restaurant Electrónico ® and the Ticket Car ® in Chile, and in Mexico and
Argentina where Tickets Car ® are planned to be transitioned to electronic formats in 2010.
WATTS was developed from a secure and high performance financial authorization system
according to norms comparable to international banking standards (ISO8583, EMV) and is compatible
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