PAYNOVA LAUNCHES MOBILE PAYMENT SOLUTION

Paynova AB has signed an additional agreement with TV4 Interaktiv regarding Paynova SMS. This is the first payment solution for mobile phones where telecom providers do not handle the payment transfer. Commercial and non-profit service providers can thus lower their costs considerably and instead keep or distribute over 80 per cent of their income. The launch will take place in May.

Paynova SMS is a further development of the Paynova Wallet for mobile online payments. With Paynova SMS, payments can be made securely via a mobile phone in a single sequence as soon as the service is activated for the first time. Paynova SMS handles both payment calls (Premium Rate) and payment SMS (Premium SMS, which are sent to card numbers, usually at a higher rate than for normal calls). With Paynova SMS, the supplier can set whatever price he likes for the service. Previously, price-setting for payment SMS was fixed at SEK 5, 10, 15 or a maximum of 30, which also hindered people from offering the service.

Mobile phones as practical payment tools are increasingly important for non-profit collections and commercial services, but to date development has been limited by the price-setting of telecom providers through much of the transferred sum being swallowed up in costs. The decision affects a variety of payments where payment SMS or payment calls can be used.

“It is a ground-breaking order and an international reference object for us that was preceded by extensive development and assessment,” says Paynova’s CEO Pelle Hjortblad. “The deductions for this type of service have been just too big. With lower costs, the market will grow faster than previously, which is what has happened in Norway. We are pricing ourselves competitively on the mobile service providers market yet nevertheless we can make a lot of money, and at the same time the service providers will be compensated by increased traffic on the network. Almost everyone has a mobile phone; it sits on their desk and is always available for use, including as a payment tool. Our payment solution can be used in a number of different contexts, for example, for telephone voting at fund raising or sports events, but also for administering information services, advertisements on TextTV, subscriptions and online payments generally.”

For the Världens Barn (Swedish international children’s charity) fund raising through the Swedish Song for Europe, people across Sweden rang in a payment total of SEK 22 million. But after administration costs were paid, the net sum was SEK 5.5 million. If Paynova SMS had been used fully, more than double the amount would have actually gone to Världens Barn.

Comprehensive discussion

There is currently a comprehensive discussion in the media concerning the high costs for SMS payments up till now. Relevant articles on the subject are available on our website www.internetworld.idg.se:

http://internetworld.idg.se/ArticlePages/200404/19/

20040419100554_IW794/20040419100554_IW794.dbp.asp

http://internetworld.idg.se/ArticlePages/200404/19/

20040419094805_IW991/20040419094805_IW991.dbp.asp

For further information. please contact:

Mats Jonnerhag, PR and information, Paynova AB

Cell: +46 (0) 708-754 920

Email: mats.jonnerhag@paynova.com

Pelle Hjortblad, CEO Paynova AB

Cell: +46 (0)701-810 110 Phone: +46 (0)8-517 100 07

Email: pelle.hjortblad@paynova.com

About Paynova

Paynova AB, listed on NGM Equity on 26 February 2004, is a company specialising in secure online payments. The Paynova Wallet is a digital wallet for digital transactions that can handle amounts from 5 pence and up. The digital wallet enables the customer to manage and control purchases limiting his/her personal credit card or eBanking information to only one counterpart. The Paynova Wallet is easy to acquire and use, and simple for the merchant to install. More than 20 000 banks worldwide accept the Paynova solution for VISA and MasterCard payments. Since its launch in 2001, Paynova AB has signed agreements with more than 500 companies and organisations that now offer the Paynova Wallet as a payment option on their websites. Pelle Hjortblad is the CEO of Paynova. The full Paynova share prospectus can be found at www.paynova.com