MEMORANDUM OF UNDERSTANDING

                           MEMORANDUM OF UNDERSTANDING

                                     BETWEEN

                    BEIJING PURPLE STARS APPRAISAL CO., LTD.

                                       AND

                   ASIA PAYMENT SYSTEMS (HONG KONG) CO., LTD.

<PAGE>

THIS MEMORANDUM OF UNDERSTANDING ("MOU") IS MADE ON THE DECEMBER 22ND, 2004

BETWEEN:

BEIJING  PURPLE STARS APPRAISAL CO., LTD, with its principle office at Room 508,

Chang  Yuan  Tian  Di  Building  B-2,  No.  18, Suzhou Street, Haidian District,

Beijing,  China  (hereafter  referred  as  BPS)

AND

ASIA  PAYMENT  SYSTEMS  (HK) LTD. with it's principal offices at 39th Floor, One

Exchange Square, 8 Connaught Place, Central, Hong Kong (hereafter referred to as

"APAY")

WHEREAS

(1)  Beijing  Purple  Stars  Appraisal  Co.  Ltd. is an official appraisal agent

     licensed  by  the  Chinese  government to provide appraisal services to the

     municipal  government  and  to the public. In addition, BPS provides credit

     files and credit rating services to the banks and financial institutions in

     Beijing.

(2)  Asia Payment Systems (HK) Ltd. is a wholly owned subsidiary of Asia Payment

     Systems  Inc.  (NASD  OTCBB:  APYM) and is engaged in providing credit card

     processing  system  services  and  related  applications;

NOW  IT  IS  HEREBY  AGREED  AS  FOLLOWS:-

1.   INTENDED  JOINT  CO-OPERATION

                                        1

<PAGE>

     (1)  The parties wish to record their intentions to create and implement an

     international  standard file format credit bureau system for the purpose of

     gathering,  storing, and selling credit file data to clients both in China.

     and  abroad,  as  the  cooperation  moves on, to provide, including but not

     limited  to,  professional merchant credit card and loyalty card processing

     services  to  merchants  and  financial  institutions  in  China.

     It  is intended that the parties will in good faith discuss the commercial,

     technical and legal issues which may arise in the parties undertaking joint

     co-operation  in  the promotion and launch of the Service to serve both the

     governmental and commercial sectors on the proposed terms and conditions to

     be  set out in a final agreement parties will reach and execute follow this

     MOU

     (2)  APAY  will provide a project plan to the Joint Working Committee which

     it  will outline the tasks to be taken by the parties during the two months

     period,  will  provide  information,  know-how,  manpower,  tools  and

     international  access which are required and necessary for the Committee to

     perform  the  project  feasibility  study  and  business  plan.

     (3)  BPS  will  provide  to  the