Investor Relations

Payment Online Corporation has had another succeessful year, in fiscal year 2005/2006. With revenue growth of over 18%, Payment Online Corporation posted a strong year in its business and still kept expenses low and invested in product development, feature enhancements, and infrastructural development.

Payment Online is constantly refining its offerings to meet the needs of our clients in order to cement our success for the furture. We expect fiscal year 2007 to be more rewarding as we are currently looking to implement strategic alliances, mergers, and potential vertical growth strategies.

We believe we have a great plan in place and we'll continue to remain focused on the opportunities and challenges before us to continue the growth and success of Payment Online Corporation.

The blend of completely integrated and easy-to-use software and solutions, as well as in-house developed, managed, and supported services, have together made the Payment Online value proposition, simply unbeatable.

	Corporate Profile
	Payment Online Offering
	Mergers and Acquisitions
	Funding History
	Annual Shareholders Meeting 2005
	Investor Relations Mailing Address

Corporate Profile

Payment Online Inc., founded in 1997, has its headquarters based in Washington, USA. The company provides ecommerce functionality for clients that do not have, nor wish to invest in, an expensive ecommerce infrastructure in order to be able to sell online.

Our mission is to provide affordable top-quality ecommerce solutions that are compact enough to meet the needs of small businesses without IT resources, yet scalable enough to allow future growth to a large scale ecommerce enterprise, if needed.

Payment Online has developed and owns its in-house fast SSL payment gateway, the real-time credit card processing engine with automated or manual capture settlement, membership & subscription engine, automated recurring billing and management platform, digital delivery (instant download) engine, username/password authentication system, customer and orders database systems, API shopping platforms, online management systems for merchants, as well as issuing of Digital Certificates for secure connection.

Our computer and netwoking infrastructure is built and managed by a team of highly qualified professionals with extensive experience in mission-critical applications, such as secure real-time credit card processing with virtual-tunnel secure payment gateways. These individuals constantly monitor, upgrade, and manage all the server farms and perform regular audits to keep the operation running at the highest levels of reliability.

The company's Executive Managers are seasoned IT and Services Professionals with years of experience delivering the services that our clients want and need.

Payment Online's Offering ...

With growing usage of the Internet, people are utilizing the convenience of online shopping and the ability to place an order for what they want at all hours of the day and night, at the office, home, airport, a cafe, or just about anywhere you can imagine. They are wanting conveniences of Interent communications to help them improve their productiveness in the day to day balance between work and personal life.

Businesses and companies cannot ignore the purchasing power driven by online shoppers, estimated at over $300+ Billion for Business-to-Consumer, and over $1.2 Trilion for Business-to-Business markets, for 2007.

Most companies now have a website but still are in the process of adding ecommerce funtionality to their existing website in order to sell online. But developing ecommerce funtionality does not come cheap or easy.

Normally, developing ecommerce in-house or off-the-shelf requires the purchasing of secure Internet servers, digital certificates, ecommerce software, backend databases, monitoring software, security systems, payment gateway platform, and a range of computer and networking hardware. In addition to the purchase of required software and hardware, there is staffing cost for design, development, management, and maintenance of these complex systems. Individuals with this type of expertise do not come cheap. There is also additional monthly costs of colocation hosting, bandwidth, secure building, and other costs due to delay in development, time-to-market, etc.

Businesses and companies can avoid all the expense associated to the intial costs and ongoing maintenance by using our affordable ecommerce solutions and services.

Payment Online solutions and services are based on its proven and tested ecommerce platform so that businesses and companies can avoid all the costs associated to developing a complex ecommerce, and then spending astronomically to have high salaried staff maintaining these software, hardware, security, bandwidth, and networking systems.

Our technology is compact enough to meet the needs of small businesses without an IT professional or department, yet scalable enough to allow future growth to as far as, a large scale ecommerce enterprise with an IT department and a professional team of developers building a comprehensive enterprise-level business management system. However, at each step of our clients' growth, they only spend for the modules they need and use, and not more.

Payment Online Offering includes :

Affiliate Tracking & Advertising Tracking Software - for managing marketing/promotions

eComSubscription - for selling subscription online (with/without recurring billing management)

eComMembership - for selling membership online (with member management)

eComDigitalDownload - for selling digital files (software, audio/video/music, eBook, PDF, etc.)

eComShoppingCart - for selling shippable goods (anything that is shipped to a customer)

eComOnlineServices - for selling services online (consulting, business services, etc.)

DirectConnect API - for developers/programmers with backend database/server

Payment Gateway Services - for developers/programmers interested in integration

Recurring Billing System - for selling product/services with re-occuring billing intervals.

Mergers and Acquisitions ...

In August 2000, Payment Online acquired a leading payment processing house (and one of the first companies offering real-time credit card processing on the Internet), Valley Internet Services of California.

Payment Online has considered many other opportunities in the past and will consider M&A that is synergistic with the goals and objectives of the company, and its market penetration, development and expansion as well as serving the financial gains and interests of our shareholders.

Mergers and acquisitions offer a unique blend of reduced development cost for newer products and complimentory offerings, as well as acquiring experienced professionals that can become accustomed to the new structure quite rapidly, if the reasons and planning of the merger is clearly understood and the objectives are uniformly agreed throughout the entire company.

For companies that are interested in discussing Mergers and Acquisitions, please contact our offices in Washington and ask for the Director of Mergers and Acquisitions, or E-mail the Investor Relations Department.

Funding History ...

First Round of Funding
The company's first round of funding was initiated in December 1998 and under Regulation D Securities offering.

The stock price was $2.00 per share (prior to stock split).


Initial Public Stock Offering
Payment Online's initial public stock offering took place in 1999, and filing was completed with the Securities and Exchange Commission the same year, as well as the Securities Commissions of Washington, California, Oregan, and Colorado.

The stock price was $5.00 per share (prior to stock split). A stock split (10 for 1) was approved at the Annual shareholders meeting, August 2000.


Investing in Payment Online
Both individual investors and institutional investors, who wish to invest in Payment Online, can contact our Investor Relations department by E-mailing the Investor Relations Manager for additional information.

Annual Shareholders' Meeting 2007 ...

Payment Online Corporation will hold its next Shareholders meeting during August 2007. You will notified as usual with advance notice.

Please make sure that our Investor Relations department has your current address to send you the Notice of Annual Shareholders meeting. You can send your change of address by E-mail to the Investor Relations Department.

Investor Relations Mailing Address ...

For additional information about Payment Online, you can contact our offices directly by phone at (206) 382-1515 (option "0" for operator), or by sending an Email to the relevant department.