Chase Merchant Services and Peppercoin Sign Referral Agreement

Peppercoin, a payments company that enables profitable, new business models for low-priced digital content and physical goods, today announced an alliance with Chase Merchant Services, LLC, the nations largest merchant acquirer. With Peppercoins Small Transaction Suite, Chases merchant customers can capitalize on the growth of electronic small payments and increase revenues and profits via the sale of low-priced goods and services. Importantly, Peppercoins Small Transaction Suite provides digital, mobile and physical POS merchants with the flexibility to implement a variety of business models to best meet their needs. This agreement is a significant milestone for Peppercoin, as the nations largest acquiring bank recommends our solution to drive their expansion into the rapidly growing small-payments market, said Mark Friedman, president of Peppercoin. Merchants are eager to grow revenue by tapping into the small-dollar transactions market, and we expect that Chases recommendation of our joint solution will drive a significant increase in transactions through Chase Merchant Services. Significant Market Opportunity According to the Tower Group, total U.S. consumer transactions below $5 at the physical point of sale in 2003 represented $1.32 trillion. Converting these cash transactions to credit and debit card payments is a highly attractive growth opportunity for merchants in the vending, convenience, grocery and quick-service restaurant industries. With the Peppercoin Small Transaction Suite, Chase Merchant Services--along with card associations, banks, payment processors and merchants--can capitalize on these emerging markets. Chase Merchant Services--which serves the e-commerce, retail and small business industries--processes 4.3 billion transactions annually, translating to an annual revenue stream of $295 billion. The Peppercoin Small Transaction Suite provides a transparent and scalable interface that easily integrates into existing payments networks. Peppercoin accepts preferred credit and debit cards - including Visa and MasterCard - and complies with the rules and regulations of the credit card associations to securely support a variety of business models.