SmartCard Marketing Systems Inc. (PINKSHEETS:SMKG) Announces 2010 Outlook - Product Review and Revenue Streams

(PINKSHEETS:SMKG) CEO Massimo Barone said, “We are proud to present our 2010 Company Outlook. We believe that this information will allow both our company shareholders along with existing/future clientele the ability to completely understand what our great company has accomplished and achieved during its first important initial years. Our platform stands unique and can be tailored to our many different clientele needs. The current and future economic situation offers SmartCard Marketing Systems Inc. an unlimited amount of growth potential which we aim to capture during the coming years.”

FINANCIAL SERVICES

VelocityMoney Financial Services Portal

The VelocityMoney Financial portal has reached a new pinnacle of service and ease-of use. SMKG has included 4 products and 15 services under one comprehensive web application for Individuals, Businesses and Merchants. In the fourth quarter of 2009 (PINKSHEETS:SMKG) added its proprietary VelocityMoney consumer financial portal to the VelocityMerchant commercial financial management portal. Together they form a complete platform for consumers and merchants to move money, manage their stored-value debit cards, transfer money between international bank accounts in 16 different currencies and make online purchases from participating merchants. The online system allows consumers and merchants to send, collect and manage money online internationally in 19 different currencies.

Products:

Stored Value Cards – Globally-branded Open-Loop Prepaid Debit Cards

One of the most exciting new products to which (PINKSHEETS:SMKG) has acquired the distribution rights is International Stored-Value Debit Cards. These products are in high demand within the niche populations of a) those with no bank account, b) those who want to transfer money to relatives in remote locations bypassing more expensive transfer companies like Western Union, c) companies who want to put all employees, including unbanked employees, on payroll direct deposit, and d) immigrants who are trying to get financially established in their new country. Each card sale represents an average of $40 and $60 per year in residual transaction revenue.

VelocityMoney Prepaid Debit and Gift Card Program - US

(PINKSHEETS:SMKG) has marketing rights to branded Debit cards and Gift Cards under license, processed and managed by its US financial issuer. After doing a thorough market search, management has determined this to be a very unique opportunity to create revenue both through sale of the cards, and, more importantly, through recurring monthly residuals from transactions performed by cardholders.

Canadian Distribution

(PINKSHEETS:SMKG) has distribution rights to a prepaid Debit MasterCard Issued by a Canadian financial issuer. It is one of a few such cards in Canada that can be issued to an individual who does not have a bank account. This represents a huge opportunity to sell cards into a market that has little to no competition. Through its Canadian development office, (PINKSHEETS:SMKG) has significant sales opportunities to recruit resellers of its cards through transaction-based financial service providers such as bankruptcy-asset distribution trustees, check cashing establishments, payroll companies and as a funds distribution mechanism for investment houses and travel companies.

Loading Network

Green Dot Network – One of the biggest obstacles in the debit card business is getting money onto the cardholder’s card. (PINKSHEETS:SMKG) has a contract solution that gives it an advantage in the current marketplace. This solution is the Green Dot Deposit Network.

The Green Dot Financial Network allows cardholders to add cash onto their VelocityMoney cards at tens of thousands of retail locations nationwide including Rite Aid, Walgreens, CVS/pharmacy, RadioShack and WalMart.

ONLINE PIN DEBIT PROCESSING

HomeATM Payment Processing

SMKG integrated the HomeATM PIN terminal to its free Internet-based payment platform, VelocityMoney.com. The terminal plugs into the USB port on a computer with Internet access and a free VelocityMoney.com account. With no more set-up than that, the business can accept any bank's PIN-based debit card for payment. The transaction is basically treated as a cash transaction or ATM withdrawal by the bank...no charge-backs and no reserves.

SMKG receives 1% on payments processed.

MERCHANT PROCESSING

Credit Card Processing

SMKG has written an interface that allows merchants who need to process credit or debit cards remotely to use their mobile devices, such as cell phone or wi-fi to process payments and print out a receipt for the customer. The VelocityMoney Bluetooth Printer has a built-in credit card swipe/reader and thermal printer. It can be used alone or in conjunction with the HomeATM device to process credit and debit cards remotely and securely while printing out receipts for signature capture.

ONLINE BILL PAY PROCESSING

In 2008 (PINKSHEETS:SMKG) has added Online Bill Pay capabilities to its online platform, both in Canada and in the US. This allows the company’s cardholders or VelocityMoney account holders to use funds in the card or virtual accounts to pay thousands of billers online, billers like utilities, insurance companies, landlords, credit card companies, even private individuals.

The company receives from $0.50 to $2.50 per transaction, depending on the payment amount, from each transaction processed. The company expects to sign up over 5,000 users within the next 12 months.

MONEY TRANSFER SERVICES

In addition to Online Bill Pay, SMKG offers a wide variety of ways for its customers to move money anywhere in the world.

SWIFT Payment Processing

One of the services offered within the VelocityMoney product suite is the ability to send money quickly almost anywhere in the world using fiduciary services as its service provider. This company has established a network of banks on the SWIFT system where they swap or exchange money from one bank to another within the network. This allows an account holder in one country to send money to any other country in the network and receive credit in their virtual account within 24 hours. The recipient can then direct the funds to his bank account, his VelocityMoney-linked debit card or to any recipient using the Bill Pay functionality.

The company nets up to $2.50 for every transaction that is initiated through VelocityMoney.com.

E-mail Money Transfer

This service is the equivalent to what major banks in Canada offer their customers. It allows SMKG customers to send money to anyone in the world who has an e-mail address.

SUMMARY

A Successful 2010

Although many of the services have only been available a short time or are in the final stage of development, (PINKSHEETS:SMKG) has solid sales prospects for merchant locations in the travel, payday loan and financial services industries.

(PINKSHEETS:SMKG) either owns or has acquired distribution rights for prepaid products, financial services, loyalty programs and web-based information technology for non-bank, financial businesses that serve customers in niche demographic populations. Specifically (PINKSHEETS:SMKG) offers the following products and services representing a broad variety of revenue streams for the company:

We seek safe harbor.