Table of Contents 

Directory 

services are an extension of search and include Internet products (White Pages and Classifieds) people use every day. 

Broadband 

services are designed to take advantage of higher bandwidth networks. Our current and next generation applications and 

services are targeted at the DSL and cable modem markets, and are designed to create compelling reasons for customers to subscribe 

or migrate to high speed connections. 

In wireline, for search and directory services we are paid on a per query basis. We do not expect broadband revenues to be material in the 

near future.  

Merchant 

Our merchant business area develops and delivers products and application services that are designed to help merchants leverage Internet 

and wireless technologies to attract customers, reduce costs, grow sales and conduct business. These applications and services enable 

businesses to establish an online presence, promote their products and services, and conduct secure commerce using an Internet connected 

device. Our merchant services are branded for leading merchant banks and other merchant service providers who in turn offer these solutions to 

their business customers. Our merchant services are available through a broad merchant reseller channel, including Verizon, one of the largest 

providers of products and services for small to medium sized businesses in the U.S., and major financial institutions such as American Express 

and Union Bank of California. Our merchant services include:  

Payment 

solutions that enable merchants to authorize, process, and manage credit card and electronic check transactions on Internet 

enabled mobile devices and personal computers. InfoSpace payment solutions are offered as a private label service to leading 

merchant banks such as Wells Fargo and Union Bank of California and directly to merchants through InfoSpace's reseller network. 

Shopping 

services that offer a private labeled, end to end solution designed to help partners increase traffic, build customer loyalty and 

drive additional revenue through offering a comparison shopping service to their customers under their own brand. This flexible 

service can be customized to appeal to a partner's specific target market(s) and can be integrated with customer registration and 

internal loyalty programs. 

Merchant promotions 

is primarily our yellow pages services, and are distributed through leading Web sites and wireless carriers over a 

wide range of fixed and mobile Internet connected devices, offering merchants expansive networks over which to promote their 

products and services. 

Hosting 

solutions that provide merchants and Web developers with a flexible and scalable solution for establishing and building secure 

Web sites. 

We generate revenue in our merchant business area from the following sources:  

Payment transactions 

include our payment authorization and shopping services. In payment authorization, we earn revenue from our 

merchants through set up fees and from monthly subscription fees, which may include a certain number of monthly transactions. As 

merchants exceed their minimum, we receive additional revenue per transaction. For shopping, we generally receive a percentage of 

the total dollars processed in each transaction, as well as a number of basis points for shopping transactions completed on certain Web 

sites. 

Merchant promotions 

, which are primarily our yellow pages services, generate revenues on a per query basis. 

Merchant hosting 

revenues are generated on a monthly basis from subscription fees and monetization of users to the merchant's Web 

sites. 

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