Immediate action required for any Zaypay customer intending to operate services in the United Kingdom

As you may know, the regulator for premium-rate services in the UK, PhonepayPlus (“PPP”), has recently published its 12th Code of Practice, which has been approved by Ofcom, together with 22 pieces of guidance on the new Code, all of which will come into force on 1 September 2011. As a result of these changes, we can only permit customers to process payments in the UK if they have registered with PPP and confirmed their registration to us as set out below.

The focus of the new Code is on the outcomes that consumers should expect when purchasing a premium-rate service (PRS). Most importantly for PRS providers at all levels of the value-chain, there are new requirements to register with PhonepayPlus and to carry out due diligence on providers with whom they contract, and, in relation to services or contracts starting on or before 1 September 2011.

Key changes include:

A. Before providing any PRS, all Network Operators, Level 1 and Level 2 providers must register with PhonepayPlus unless they provide exempt services (section 3.4.1).

B. Contracts must require the parties to comply with the Code and any directions made by PhonepayPlus, and allow for PhonepayPlus to directly enforce the terms of the contract pursuant to section 1 of the Contracts (Rights of Third Parties) Act 1999 (section 3.3.3).

In order to adhere to the Code and allow us to continue providing PRS services, we require the relevant persons in your organization to complete the following actions before the 31st August 2011:

- Register with Phonepay Plus: http://www.phonepayplus.org.uk/Registration/Register.aspx
- Review the new Code and Guidance to ensure services meet any new requirements: http://code.phonepayplus.org.uk/
- Log in on the http://www.zaypay.com/ website, navigate to the ‘Account’ tab and enter your PPP code. Make sure that the name you have filled in as your ‘Company’ name matches your PPP registration.

If you need help with any of the above please contact Zaypay support (support@zaypay.com).

Maurice Nonnekes on behalf of Zaypay International