SmartMetric Inc (SMME)

[SecurityScientist]

Hi Pottsville. I'm not able to discuss information that is not public. Even if I know there are things I can say and things that aren't public that I can't.

So what I do know is the payments world very well. There are 4 major and another 2 minor credit card 'networks" in the World. These networks are not card issuers but provide lines for transactions to operate over. (this is a simplistic description). Then you have the credit card issuers. Credit card issuers are not network operators. They are the banks that sign up customers to use their issued credit cards.

Many people confuse for instance Visa and Mastercard's role and wrongly think they issue cards. They don't. But they do control and operate the networks that connect the retail card reading machines and ATM'S etc.

It is important to understand that in order for a Bank to issue a credit card that operates on for instance a Visa or Mastercard network the bank must have that card approved by Visa or Mastercard. The credit card manufacturer's who sell credit cards to Banks must also get approval and obtain various licenses from the one or more networks. Even the manufacturers of card readers and ATM's must get their equipment approved by one or more of the network's.

So SmartMetric is no different. It's card must be tested, approved and various licenses must be granted by one or more of the payments network's. This is before a card issuing Bank can issue it's first SmartMetric biometric credit card.

From what I know the process is exhaustive and expensive. But at the end of the day will allow Banks around the world to use the SmartMetric card and offer it to their customers.

I do know that SmartMetric is going through this process with one of the major global credit card networks while it is at the same time marketing it's card directly to the card issuing Banks.

Finally I do know that when a company enters into agreements such as testing and licensing agreements these have non disclosure clauses that restrict making public these agreements in press releases etc. These large companies are very sensitive about when, where and how their names are used by third party's and control the use of their names very tightly. I would think this is why SmartMetric hasn't made public statements naming which network or networks it is dealing with.