SMARTCARD MARKETING SYSTEMS, INC., AND SUBSIDIARY

20c Trolley Square Wilmington,

Delaware, 19806

As of November 11, 2021, the number of shares outstanding of our Common Stock was: 470,536,506

As of September 30, 2021, the number of shares outstanding of our Common Stock was: 470,536,506

Financial Statements

www.smartcardmarketingsystems.com

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MARKET & BUSINESS DISRUPTION

SmartCard Marketing Systems Inc (OTC:SMKG) an industry leader in specialized industry e-commerce, cloud and mobility applications to the global PayTech and FinTech markets. SMKG is an entrepreneurial boutique technology company, providing business intelligence and digital transformation strategies with a proprietary portfolio of applications and wireframes for banking, enterprises, retail e-wallets, digital id, blockchain, crypto, nft, e-KYC, digital workforce, events management, education, telemedicine and ride-booking industries.

For more info visit www.smartcardmarketingsystems.com or

visit our business applications marketplace at www.Emphasispay.com.

CORPORATE OFFICES AND LOCATIONS:

Since the beginning of the Covid19 Pandemic the company terminated its open monthly membership with the Regus Offices in Canada and India. The company's team works remotely from their home locations. Our main focus of operations is through our hosted solutions with AWS and Iweb which supports our technology platforms in production for client training and demo purposes.

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THE COVID -19 PANDEMIC

The digital transformation and virtualization of businesses globally has been accelerated by Governments drastically faced with many unknown challenges. There has never been a time where every Country in the world has cut through all regulatory tape to allow the opportunity for business continuity through digital acceptance of processes, protocols and contactless transacting because of social distancing and recurring lockdowns.

SmartCard Marketing Systems Inc (OTC:SMKG) now on an accelerated track of deployments and opportunities which prior COVID 19 was only a matter of time before these same barriers would be regulated and broaden the company's already global opportunity for growth.

The 3rd quater September 30 2021 slowly recovered with some normal as travel begins to be a possibility once more.

OVERVIEW

SmartCard Marketing Systems Inc OTC:SMKG a fintech & paytech company specializes in digital transformation applications with business intelligence processes for industry specific clients. The company develops its own proprietary suite of e-commerce, cloud and mobility applications for clients to "Brand As Your Own" deployment's. The company's proprietary portfolio is marketed through its own marketplace Emphasispay.com

The company distinguishes itself as having a large portfolio of Marketplace technologies that meet the needs of Banks, Telecoms and Enterprises seeking to digitally transform their merchant and customer experiences.

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HISTORICAL:

Since the beginning of 2015 the company focused on 2 distinct channels of business development;

1. The Development and commercialization of its leading platforms for the Paytech and Fintech global markets; leading the offering the Genorocity.com & Mtickets.events platforms
2. Strategic partnerships to develop an alterative payments solution for Banks & Telecom Acquirers/Issuers of Cards (Credit, Debit or Loyalty) as an acceptance point for emulating payment and reward transactions, processing & settlement.

The first partnership entered into with Contact Innovation in North America in late 2014 and early 2015 resulted in the technology development for the Check21 Act servicing the need for Remote Deposit Capture (RDC) which was commercially deployed trial stages in late May of 2015 with the first joint client ICICI Bank of India (its Canadian subsidiary across 14 branches and select corporate clients). The platform solution as a cloud based host was branded www.check21saas.comand now the success of our deployment is allowing us to market to customers internationally. Concurrently to the development of Check21Saas.com the company designed and developed Genorocity.com and shortly after Mtickets.events.

Throughout 2016 and 2017 the company ambitiously sought to expand the technology portfolio to meet the new changes in global markets for business process applications and meet the foreseeable demand coming in the financial, workforce and retail markets for intelligent business applications ready to deploy.

In 2018 - 2019 management continued to develop its payment infrastructure and worked with clients to commercialize its solutions strengthening its position in the financial services segment. We are transforming the company from a direct

merchant services provider to enabling a channel of portfolio merchants for Banks & Telecoms. This transition has

allowed SmartCard to position itself as a technology host & support Processors and Industry Consultants building relationships with Banks, Credit Unions and partnering with payment providers globally.

For 2020, the company released 3 SAAS platforms to meet the needs of concerns raised by the COVID-19 Pandemic which created further opportunities in EdTech, Telemedicine & Pre-screening security technologies. Our response to this was the release of Eschool.systems, Phaces.io and Doctor-Vid platforms which are having great success with opportunities in cloud products distribution in India and the SARC regions.

FINANCIAL HIGHLIGHTS FOR 2019 AND 2020

• New client and partner OriginatorX in Asia. $500k USD equity for 50% of equity at current market evaluation and capitalization of $1m USD.
• New client and partner Xpay World in Asia. $1.2m USD equity for 7% of equity at current market evaluation and capitalization of $35m USD.
• The company is invested in a tech firm start-up in India with a 60% equity share
• Conversions and booking of debt significantly reducing medium and long-term debt.
• Expansion into to financial marketplace in India with Articul8te and Granularchain.com for EKYC by Video and Permission based digital-id key management. The company is working with 3 of top 10 financial insurance underwriters in the country on both platforms as a solution for Digital ID & Processing.
• New digital integration partnerships with Visa Everywhere and Discover Card US
• Partnerships with two AI firms, Onplan of the USA in the Restaurant sector and Enablefunding of Australia in the Fintech Startup sector.

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Below is a breakdown of the past three years of operations and how our services have been segmented.

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RECENT NEWS HIGHLIGHTS

• The Company releases its Granularchain.com, creating Digital key for Financial Institutions
• The Company releases Genorocity.com with both Apple Pay and G Pay
• Integration to Cybersource Visa and Visa Direct
• Integration of Alipay and Wechat Pay for Asia
• Launch of Axepay Inc. with global FX partner onboarding in 42 Countries including China, servicing 200 Countries and 40 currencies and unique offering for funds transfers into China Union Pay and Banks in Mainland China.

MAJOR HIGHLIGHTS - 2021 3RD QTR.

The company releases Emphasispay.com the business applications marketplace for the proprietary solutions of SmartCard Marketing Systems Inc (OTC:SMKG). The combined CRM and CMS platform is the company's marketing strategy to build its satellite partners network and target large enterprise merchants.

The Campaign focuses on the theme "Brand As Your Own" showcasing the opportunity to financial Institutions and Global Enterprises the potential of deploying their own specialized industry marketplace.

Note: The Brand As Your Own strategy allows customers to license and white label specific or the entire portfolio to their merchant portfolio.

• PF Sponsorship License with Minority interest ownership of Xpay
• Launch of Anypay.ph payments in Philippines
• Xcoop partnership expansion for Cross-border payments into LATAM
• Signing of Arclay to over 2000 plus formulas for IP token offerings
• Signing of Shekel World for new Ecommerce & Coin offering
• Compuage Infocom India to distribute the SMKG portfolio of IP , over 10,000 Agents
• DTone of Singapore deal entered for Airtimeplay remittances for Axepay
• ICICI Bank use of Cheque21saas commences increase in volumes

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