Capinfo announced that on Dec 30, 2005, the company had entered into an assets transfer agreement to sell its online payment assets at USD2.5m. The purchaser, PayEase Corp, is a company incorporated in the US principally engaged in the research and development of electronic payment services includes payment via mobile phone and internet in the PRC as well as Hong Kong and the United States. And Capinfo obtained a 25% stake in PayEase.

Capinfo started its online payment service in 1999, that was the first 3rd-party internet payment gateway operated by none-bank in China market. In the 9 months to September of 2005, the payment unit made a loss of RMB 0.44m on a total payment volume of RMB 200m. Revenue generated from the online payment business represented approximately 2% of the company’s turnover for the recent 3 years.