Document:

Exhibit 10.2

              Material Terms of Verbal Agreement with Taxplan Ltd.

Asia Payment System (HK) Ltd. purchased from Taxplan, Ltd., an automobile for
$3,200.  Edith Kam Ying Ho is an affiliate of Taxplan, Ltd.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

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     (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  Joint  Working  Committee's the necessary
     facility  and support for the operation; will provide assistance and access
     to  the  related  government, banking, operation and marketing, client data
     base  as  well  as  other information which are related and inquired by the
     Joint Working Committee to ensure a successful completion of their required
     tasks.

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<PAGE>
2.   FORMAL  AGREEMENT

     It is intended that the parties will negotiate in good faith the terms of a
     Joint  Co-operation  Agreement  between  the  parties  hereto  as  soon  as
     reasonably  practicable  and  in  any event within 45 days from the date of
     signing this MOU. If no Joint Co-operation Agreement is entered into within
     45  days  from  the  date  of  signing this MOU or no extension is filed in
     writing  by  both  parties,  this  MOU  will  automatically expire. For the
     avoidance  of  doubt,  neither party will have any claims against the other
     party  if  they  fail  to  reach an agreement or fail to enter into a Joint
     Co-operation  Agreement.

3.   SECURE  DATA  CENTRE

     It is intended that the parties will arrange for both the relevant software
     application  and the hardware to be hosted at a yet to be determined Secure
     Data  Centre.

4.   FUNDING

     The  parties  acknowledged  that the initial set up for the credit file and
     subsequent  payment processing service platform in Beijing will required up
     to  USD300,000  funding,  the  parties  further  agreed that BEIJING GLOBAL
     SYSTEM  CO.,  LTD. (Business associate to both parties) will assist APYM to
     bring  in  domestic  funds  up  to  such  amount  to  support  the  project
     development.

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<PAGE>
5.   CONFIDENTIALITY

     The  parties  acknowledge  that  they  may  obtain  certain  Confidential
     Information  (whether  in  documented form or otherwise) from each other in
     pursuance of this MOU, and which information is of a commercially sensitive
     and/or  confidential  nature.  Therefore,  the  parties  will  sign  a
     "Non-Disclosure  Agreement"  subsequent  to  the  execution of this MOU, to
     enforce  the  agreement  of  confidentiality  amount  parties.

6.   INTELLECTUAL  PROPERTY

6.1  Neither  party assigns any of its intellectual property rights to the other
     under this MOU. Any intellectual property rights in any software or content
     developed  or  provided by a party remains the sole property of that party.
     Both  parties  agree that they shall not use the other party's trade marks,
     service  marks,  trade  names and/or logos in any manner whatsoever without
     the  prior  written  consent  of  the  other  party.

6.2  It  is  further agreed and declared by either parties that any intellectual
     property  rights  arising out of the use of the Confidential Information or
     any  existing  intellectual property of the Disclosing Party whether by the
     Disclosing  Party  or  by  the  Recipient,  the  same shall be the absolute
     property  of  the  Disclosing  Party  and  the Recipient shall execute such
     required  documentation  and  to  do such act as reasonably required by the
     Disclosing Party to give effect to this proprietary right of the Disclosing
     Party.

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7.   MISCELLANEOUS

7.1  This  MOU  shall  be  construed  and  governed  by  the  laws of China.

7.2  This  MOU  supersedes  any previous agreements whether in writing or orally
     made  by  the  parties.

7.3  Neither party shall assign any of its rights or obligations under this MOU,
     except  with  the  prior  written  consent  of  the  other.

7.4  Each  party  acknowledges  that  it  has no authority to bind or commit the
     other  party to any contractual liability except as may be otherwise agreed
     in  writing.

7.5  This MOU shall not be amended and none of its provisions shall be deemed to
     have  been  waived  by  any  act  or  omission by either party except by an
     instrument  in  writing  signed  by  authorized  officers  of  the parties.

7.6  If any provision of this MOU is or is found to be illegal, unenforceable or
     otherwise  invalid,  then,  notwithstanding  any  such  illegality,
     unenforceability  or  invalidity,  this  MOU shall remain in full force and
     effect,  save  to  the  extent  that such illegal, unenforceable or invalid
     provision  shall  be  deemed  to  be  deleted.

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<PAGE>
IN  WITNESS WHEREOF the parties have executed this MOU on the day and year above
written.

Signed for and on behalf of                    Signed for and on behalf of

Beijing Purple Stars Appraisal Co., Ltd.       Asia Payment Systems (HK) Limited

Signed:                                        Signed: /s/ Matt Mecke

Name:                                          Name: Matt Mecke

                                        6TERM SHEET

THIS  TERM  SHEET  DATED  FEBRUARY  16TH, 2005 (THE "TERM SHEET") SUMMARIZES THE
BASIC  TERMS  AND  CONDITIONS  ON  WHICH STRASBOURGER PEARSON TULCIN WOLFF, INC.
("SPTW)")  PROPOSES  TO  ACT  AS INVESTMENT BANKER FOR A FINANCING OF AN INITIAL
AMOUNT  OF  $100,000  (INITIAL  OFFERING) AND A SECOND FINANCING OF A MINIMUM OF
$500,000  UP  TO  A MAXIMUM OF $2,000,000.  (THE " FINANCING") FOR: ASIA PAYMENT
SYSTEMS,  INC.  (THE  COMPANY).  (COLLECTIVELY  THE  PARTIES)

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OFFERING:                               The  funding  shall  take  place  in two
                                        phases.  The  initial  offering shall be
                                        the  subscription  for  shares of common
                                        stock for $100,000 (one hundred thousand
                                        dollars).

                                        The  terms  for  the  initial  offering
                                        shall be as follows:

TERMS OF THE INITIAL OFFERING:          The  Company  shall  issue  shares  of
                                        its  common  stock  at  a  price  of
                                        $0.67.  The  shares of common stock will
                                        be  registered  by  the  company  within
                                        {120} days of the closing of the initial
                                        offering.

                                        In  addition  the  company  will  issue
                                        to  SPTW  150,000 (one hundred and fifty
                                        thousand) warrants to purchase shares of
                                        common  stock  at  an  exercise price of
                                        $1.20.

TERMS OF THE FINANCING:                 The  Financing  shall  be  a  minimum of
                                        $500,000  up to a maximum of $2,000,000.
                                        The shares shall be issued at a price of
                                        70%  or  greater  of the previous 30 day
                                        trailing  average  closing  price. The
                                        company  undertakes  to  register  the
                                        shares  of  common  stock  within {120 }
                                        days of the completion of the financing.

                                        In  addition  the  company  will  issue
                                        to SPTW 1,000,000 (one million) warrants
                                        to  purchase shares of common stock at a
                                        price  of  75%  of the offering price of
                                        the financing. The company undertakes to
                                        ensure  the  registration  of  the
                                        underlying  shares within {120 } days of
                                        the completion of the financing.

ANTI-DILUTION:                          In  the  event  that  after  the  date
                                        hereof, the Company issues any shares of
                                        Common  Stock, preferred stock, options,
                                        warrants  or convertible securities at a
                                        purchase  price,  conversion  price  or
                                        exercise  price  (including  any
                                        adjustments thereof) per share less then
                                        the price agreed between the company and
                                        SPTW then the

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                                        Price  and  the  number  of  shares
                                        shall  be adjusted on a weighted-average
                                        basis  (subject  to  certain  customary
                                        exceptions  to  be  agreed  to  by  the
                                        parties),

DEFAULT PROVISIONS:                     In  the  event  that  the  company fails
                                        to  register  the shares of common stock
                                        as  contemplated  then the company shall
                                        be  subject  to  a  number  of  default
                                        provisions  to  be  agreed  between  the
                                        parties.

MISCELLANEOUS TERMS:

BOARD REPRESENTATION:                   SPTW  shall  be  entitled  to  appoint
                                        one  members  to the board of directors.
                                        Upon  completion of the full ten million
                                        dollars raise SPTW has the option to add
                                        another board member.

REGISTRATION RIGHTS:               Certain  demand  and  piggyback  rights
                                   covering  the  Shares and the Warrant Shares.
                                   Shall be agreed between the parties

CONDITIONS TO CLOSING:             There  shall  be  outstanding  on  the  date
                                   of issuance of the common shares and warrants
                                   (i)  no  more  than  ______________ shares of
                                   common  stock  on a fully diluted basis; (ii)
                                   no  debt  outstanding  other  than  accounts
                                   payable,  credit  facility  and capital lease
                                   obligations.

                                        Subject  to  the  satisfaction  of
                                        SPTW's  due  diligence  investigation of
                                        the  Company,  including,  without
                                        limitation  to,  the Company's financial
                                        statements, projections, cash burn rate,
                                        business  prospects,  capital structure,
                                        contractual  arrangements  and  other
                                        customary conditions.

FEES:                                   Upon  the  closing  of  the  Financing,
                                        the  Company  shall  pay  (i)  to SPTW a
                                        placement  fee  equal to 8% of the gross
                                        proceeds  of the Private Placement, plus
                                        (ii)  unaccountable  costs  of 2% of the
                                        gross  proceeds.(iii)  issue  five  year
                                        warrants  to  purchase  1,000,000 of the
                                        companies  common  shares at an exercise
                                        price

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<PAGE>

                                        equal  to  75%  of  the  price  of  the
                                        shares issued pursuant to the financing.

                                        The  Company  shall  also  be
                                        responsible  for  its  own  legal,
                                        accounting  and  travel expenses as well
                                        as any printing and mailing expenses for
                                        the  e  Financing. Upon the execution of
                                        this  Term  Sheet, the Company shall pay
                                        to  SPTW a cash retainer fee of $30,000,
                                        (thirty  thousand)  dollars which amount
                                        shall  be  applied  as  a credit against
                                        SPTW's  out-of-pocket  expenses.  SPTW
                                        shall  provide  reasonable
                                        documentation  of  its  out-of-pocket
                                        expenses,  including  but not limited to
                                        airline  ticket  stubs,  copies of hotel
                                        invoices,  and  copies  of  invoices for
                                        legal services.

                                        In  the  event  that  the  Company
                                        elects not to proceed with the Financing
                                        for any reason after the date hereof and
                                        prior  to  the Termination Date, then in
                                        addition  to  any  and  all compensation
                                        previously  received by or owed to SPTW,
                                        the  Company  shall  pay  to  SPTW  a
                                        financial  advisory  and structuring fee
                                        of  $100,000, which fee may, at the sole
                                        option  of  SPTW,  be  payable  by  the
                                        issuance  and delivery by the Company of
                                        {  }  shares  of  the  Company's  Common
                                        Stock.

STRASBOURGER INTRODUCTIONS:             The  Company  hereby  agrees  that  if
                                        at  any  time  within  two year from the
                                        later  of  (i)  the  date  of  the final
                                        closing  of  the  Financing, or (ii) the
                                        date  of  termination of this Term Sheet
                                        (the  "Effective Date"), the Company (or
                                        any  of  its  subsidiaries or affiliated
                                        entities  or  successors)  obtains  any
                                        financing  from  any  person  or  entity
                                        introduced by SPTW, the Company will pay
                                        to  SPTW  the  fees  set  forth  herein.

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If  the  foregoing  is  acceptable, please sign a copy of this Term Sheet in the
space  provided  below  and return the copy to the undersigned by February 21st,
2005.  If an executed copy of the Term Sheet is not received on or prior to such
date,  this  Term  Sheet  shall  be  void  and  have no further force or effect.

                                Very truly yours,

                                STRASBOURGER PEARSON TULCIN WOLFF, INC.

                                By:
                                   --------------------------------

Confirmed and Agreed To:

Asia Payment Systems, Inc.

By:
   ----------------------------

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