CONSOLIDATED STATEMENT OF EARNINGS
                                 (Unaudited)


                                 Three Month Period        Nine Month Period
                                 Ended December 31         Ended December 31
                                   2001        2000        2001        2000

                                    $           $           $           $
    (in thousands of dollars,
     expect per share amounts)


    Revenues
      E-commerce                  19,279      21,260      62,653      50,845
      Interest                       284       1,078       2,035       2,543
                                ----------------------  --------------------

                                  19,563      22,338      64,688      53,388

    Cost of revenues               9,503      11,336      29,626      28,254
                                ----------------------  --------------------


    Gross margin                  10,060      11,002      35,062      25,134

    Expenses
      Research and development     1,415       2,156       5,397       5,472
      Sales and marketing          2,234       2,030       7,896       4,886
      Operations                   1,722         681       5,178       1,297
      General and administrative   3,819       3,297      10,454       7,093
                                ----------------------  --------------------

                                   9,190       8,164      28,925      18,748
                                ----------------------  --------------------


    Earnings before undernoted
     items                           870       2,838       6,137       6,386

    Provision for contingency
     (Note 6)                      3,000           -       3,000           -
    Amortization of capital
     assets                        1,321         683       3,490       1,221
    Interest on capital lease
     obligations                     120           -         310           -
    Write-off of expired
     tax credits receivable            -           -           -          81
                                ----------------------  --------------------


    Earnings (loss) before
     income taxes, amortization of
     goodwill and intangibles
     and discontinued operations  (3,571)      2,155        (663)      5,084

    Income taxes (Note 7)
      Current                        650        (113)        696           -
      Recovery due to application
       of loss carryforward         (650)          -        (650)          -
      Future                      (4,105)      1,706      (3,287)      2,906
                                ----------------------  --------------------

    Earnings before amortization
     of goodwill and intangibles
     and discontinued operations     534         562       2,578       2,178

    Amortization of goodwill and
     intangibles                       -       9,233           -      22,060
                                ----------------------  --------------------


    Earnings (loss) before
     discontinued operations         534      (8,671)      2,578    (19,882)

    Discontinued operations,
     net of income taxes               -         142           -         337

                                ----------------------  --------------------

    Net earnings (loss)              534      (8,813)      2,578    (20,219)
                                ----------------------  --------------------

                                ----------------------  --------------------


    Basic earnings (loss)
     per share (Note 8)
      Earnings (loss) before
       discontinued operations     $0.01      $(0.08)      $0.02      $(0.20)
      Discontinued operations      $   -      $    -       $   -      $    -
                                ----------------------  --------------------

      Net earnings (loss)          $0.01      $(0.08)      $0.02      $(0.20)
                                ----------------------  --------------------

                                ----------------------  --------------------


    Diluted earnings (loss)
     per share (Note 8)
      Earnings (loss) before
       discontinued operations     $0.01      $(0.08)      $0.02      $(0.20)
      Discontinued operations      $   -      $    -       $   -      $    -
                                ----------------------  --------------------

      Net earnings (loss)          $0.01      $(0.08)      $0.02      $(0.20)
                                ----------------------  --------------------

                                ----------------------  --------------------


    Weighted average number of
     shares outstanding
     (Note 8)               105,124,190  103,923,538  105,209,335  99,187,475
                            ------------------------  ----------------------

                            ------------------------  ----------------------




                      CONSOLIDATED STATEMENT OF DEFICIT
                                 (Unaudited)



                                                           Nine Month Period
                                                           Ended December 31
                                                           2001        2000

    ( in thousands of dollars )                             $           $



    Deficit - beginning of period                         86,663       4,787

    Net (earnings) loss                                   (2,578)     20,219

    Share issue expenses                                      15          89

    Adjustment for future income taxes                         -      (3,033)

                                                         -------------------

    Deficit - end of period                               84,100      22,062
                                                         -------------------

                                                         -------------------




                    CONSOLIDATED STATEMENT OF CASH FLOWS
                                 (Unaudited)


                                   Three Month Period      Nine Month Period
                                   Ended December 31       Ended December 31
                                    2001       2000        2001       2000

    ( In thousands of dollars )



    Operating activities
      Net earnings (loss)            534      (8,813)      2,578     (20,219)
      Non-cash items
        Amortization of capital
         assets                    1,321         683       3,490       1,221
        Amortization of goodwill
         and intangibles               -       9,233           -      22,060
        Deferred revenue              42           -         216           -
        Future income taxes       (4,105)      1,500      (3,287)      2,700
        Gain on disposal of
         discontinued operations       -        (154)          -        (154)
        Tax credits receivable      (216)          -        (720)          -
        Write-off of expired tax
         credits receivable            -           -           -          81
                                ----------------------  --------------------

                                  (2,424)      2,449       2,277       5,689
      Changes in working
       capital items               2,806      27,672      (4,992)     48,654
                                ----------------------  --------------------

      Cash flows from (used for)
       operating activities          382      30,121      (2,715)     54,343
                                ----------------------  --------------------



    Investing activities
      Capital assets                (775)     (1,077)     (3,164)     (3,426)
      Business acquisitions, net       -      (2,098)          -      (4,853)
      Short-term investments           -           -      22,724           -
      Loan receivable              3,158           -           -           -
      Proceeds on disposal of
       discontinued operations         -         154           -         154
                                ----------------------  --------------------

      Cash flows from (used for)
       investing activities        2,383      (3,021)     19,560      (8,125)
                                ----------------------  --------------------


    Financing activities
      Cash held in escrow              -           -           -       6,554
      Repayment of obligations
       under capital leases         (357)          -      (1,219)       (106)
      Issuance of share capital       10         170         102         676
      Repurchase of share capital      -        (242)       (222)       (242)
      Share issue expenses           (15)        (58)        (15)        (88)
                                ----------------------  --------------------

      Cash flows from (used for)
       financing activities         (362)       (130)     (1,354)      6,794
                                ----------------------  --------------------


    Net change in cash and cash
     equivalents during the
     period                        2,403      26,970      15,491      53,012

    Cash and cash equivalents,
     beginning of period          92,034      78,324      78,946      52,282
                                ----------------------  --------------------

    Cash and cash equivalents,
     end of period                94,437     105,294      94,437     105,294
                                ----------------------  --------------------

                                ----------------------  --------------------



    Cash and cash equivalents
    Cash                          92,216      70,425      92,216      70,425
    Short-term investments         2,221      34,869       2,221      34,869
                                ----------------------  --------------------

                                  94,437     105,294      94,437     105,294
                                ----------------------  --------------------

                                ----------------------  --------------------



    Supplementary information
      Interest paid                  120           -         310           -
                                ----------------------  --------------------

                                ----------------------  --------------------




                         CONSOLIDATED BALANCE SHEET



                                                  As at December  As at March
                                                        31, 2001     31, 2001
                                                     (Unaudited)    (Audited)
    ( in thousands of dollars)


    Assets
    Current Assets
      Cash and short-term investments (Note 2)            94,437     101,670
      Accounts receivable                                  3,465       1,626
      Other receivable (Note 6)                            4,468           -
      Tax credits receivable                               1,829       1,355
      Prepaids                                             2,485       1,936
                                                        --------------------

                                                         106,684     106,587
                                                        --------------------


    Tax credits receivable                                 3,605       2,885
    Future income taxes                                    5,485       2,198
    Capital assets                                         8,553       7,714
    Goodwill                                              18,113      18,113
    Intangibles (Notes 3)                                  1,445       1,445
                                                        --------------------

                                                         143,885     138,942
                                                        --------------------

                                                        --------------------




    Liabilities
    Current Liabilities
      Accounts payable and accrued liabilities            12,071      17,129
      Customer deposits (Note 4)                          78,804      70,155
      Deferred revenue                                         -       1,253
      Obligations under capital leases due within
       one year                                            1,186       1,179
                                                        --------------------

                                                          92,061      89,716
                                                        --------------------


    Obligations under capital leases                       2,276       2,337
    Deferred revenue                                         216           -
                                                        --------------------

                                                           2,492       2,337
                                                        --------------------


    Shareholders' equity
      Share capital (Note 5)                             133,432     133,552
      Deficit                                            (84,100)    (86,663)
                                                        --------------------

                                                          49,332      46,889
                                                        --------------------

                                                         143,885     138,942
                                                        --------------------

                                                        --------------------


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               (Unaudited)

    (Tables in thousands of Canadian dollars)

    These interim consolidated financial statements are in accordance with
Canadian generally accepted accounting principles and are consistent with
the policies outlined in the Corporation's audited financial statements, except
where stated below. The interim financial statements and related notes
should be read in conjunction with the Corporation's audited financial statements
and Annual Information Form. When necessary, the financial statements include
amounts based on informed estimates and best judgments of management. Actual
results may differ from those estimates. The results of operations for the
interim periods reported are not necessarily indicative of results to be
expected for the year.

    1    New Accounting Pronouncements

         As at April 1, 2001, the Corporation adopted the recommendations of
         the Canadian Institute of Chartered Accountants on the presentation
         of interim financial statements. The new recommendations require
         minimum note disclosure including the basis of presentation of the
         interim financial statements.

         The Corporation is engaged in e-commerce processing services.
         Revenue from e-commerce processing services are recognized at the
         time services are rendered. In February 2001, the Ontario Securities
         Commission issued its initial report on revenue recognition. This
         report indicates that companies should follow the Securities and
         Exchange Commission's Accounting Bulletin 101 (SAB 101) - Revenue
         Recognition in Financial Statements released in December 1999. As at
         April 1, 2001, the Corporation adopted on a prospective basis, the
         new recommendation for set-up fee revenues by deferring the fees
         over the expected term of the customer relationship.

         As at April 1, 2001, the Corporation adopted, on a retroactive
         basis, the new recommendations of the Canadian Institute of
         Chartered Accountants with respect to Section 3500, Earnings per
         Share. Under the new recommendations, the treasury stock method is
         to be used, instead of the current imputed earnings approach, for
         determining the dilutive effect of stock options. All prior diluted
         earnings per share amounts have been recalculated in accordance with
         the new requirements. Since the Corporation had incurred losses,
         such recalculations did not result in any change to the
         Corporation's previously reported diluted earnings per share for all
         periods presented.

         As at April 1, 2001, the Corporation adopted the new method of
         accounting for goodwill and intangibles as outlined in accounting
         pronouncements both in the United States and Canada. The application
         of these pronouncements requires that goodwill and certain
         intangibles no longer be amortized but rather reviewed for permanent
         impairment. If it is determined that there is an impairment, then
         the value of goodwill and intangibles is written down against
         earnings in the year such impairment occurs. The US standard
         (FASB 142) was released on July 23, 2001 and is applicable for all
         companies with a fiscal year end beginning after March 15, 2001. On
         August 1, 2001, the Canadian Institute of Chartered Accountants
         released a similar guideline under Section 3062 of the CICA Handbook
         for companies with a fiscal year end beginning on or after April 1,
         2001.

   2    Cash and Short-term investments

         Cash and short-term investments are comprised of the following:


                                                   December 31, 2001
                                ----------------------------------------

                                 Unrestricted    Held as          Total
                                               security deposits
                                ----------------------------------------
                                        $              $             $

    Cash                           27,420         64,796        92,216
    Short-term investments
      Maturities less than
      3 months, bearing interest
      at rates varying from
      1.42% to 1.70%                  150          2,071         2,221
                                 ---------------------------------------

                                   27,570         66,867        94,437

    Maturities more than
     3 to 6 months                      -              -             -
                                  --------------------------------------

                                   27,570         66,867        94,437
                                  --------------------------------------
                                  --------------------------------------


    2    Cash and Short-term investments (continued)

                                                   March 31, 2001
                                 ---------------------------------------

                                 Unrestricted    Held as          Total
                                               security deposits
                                 ---------------------------------------
                                       $               $             $

    Cash                           42,161         29,340        71,501
    Short-term investments
      Maturities less than
       3 months, bearing interest
       at 4.40%                     7,445              -         7,445
                                 ---------------------------------------

                                   49,606         29,340        78,946

      Maturities more than
       3 to 6 months, bearing
       interest at rates varying
       from 4.65% to 6.55%          5,367         17,357        22,724
                                  --------------------------------------
                                   54,973         46,697       101,670
                                  --------------------------------------
                                  --------------------------------------

    The Corporation has agreements with various financial institutions for
the settlement of credit card transactions. Under the terms of these
agreements, the Corporation is required to maintain certain amounts as
security deposits which may be applied against any amounts for which the
financial institutions would be entitled to reimbursement.


    3    Intangibles

         Intangibles are comprised of the following:


                                     December 31, 2001      March 31, 2001
                                     -----------------      --------------

            Intangibles
              Acquired technologies               445                 445
              Strategic alliance                1,000               1,000
                                     -----------------      --------------

                                                1,445               1,445
                                     -----------------      --------------
                                     -----------------      --------------


    4    Customer Deposits

         Customer deposits include security deposits required from customers
         to allow the Corporation to recover any amounts charged by the
         financial institutions under the arrangements described in Note 2.


    5    Share Capital


                                                    December 31, 2001
                                           ---------------------------
         Equity
          Number of voting common shares                 105,134,697
                                           ---------------------------
                                           ---------------------------

        Stated Capital

                                        Common shares      Special Warrants
                                 -------------------------------------------
                                        Number    Amount   Number    Amount
                                 -------------------------------------------
                                                    $                  $
            Balance as at
             March 31, 2001        104,986,258   132,682   200,000      870

            Conversion of special
             warrants                  200,000       870  (200,000)    (870)
            Exercise of employee
             stock options             155,039       102         -        -
            Share buy-back            (206,600)     (222)        -        -
                                 -------------------------------------------
            Balance as at
             December 31, 2001     105,134,697   133,432         -        -
                                 -------------------------------------------
                                 -------------------------------------------

        Stock option plan
          Stock option plan for
           common shares at prices
           ranging from $0.33 to
           $12.60 per share and
           expiring on dates
           up to 2009                                            10,461,225
                                                            ----------------
                                                            ----------------

    On November 6, 2001, the Corporation adopted a voluntary stock option
replacement program for the benefit of its employees. Under the program, the
Corporation's employees had the opportunity to surrender previously granted
outstanding stock options having exercise prices ranging from $1.00 to
$11.10 in exchange for a lesser number of new stock options at a lower exercise
price based on a prescribed formula. These new stock options have an exercise
price of $0.90, being the market value of the Corporation's common shares on
November 5, 2001, and vest over a period of three years. This offer expired
on December 21, 2001 and a total of 1,717,800 old options were cancelled and
1,209,235 new options were granted.
    Members of the Board of Directors, executive officers and certain other
members of the senior management team were not eligible to participate in
this program. The exchange program was in compliance with applicable accounting
standards and, accordingly, no compensation charges resulted from the
exchange program.

    6 Contingency

      The Corporation has a receivable from one of its suppliers of services
      in the amount of $10.2 million. This receivable relates to charges from
      the supplier which the Corporation believes are unsubstantiated and the
      Corporation is actively pursuing their recovery. In the opinion of
      management, adequate provision has been made in the accounts of the
      Corporation.

    7 Income Taxes

      The Corporation, as at March 31, 2001, had set up a valuation allowance
      on all of its U.S. subsidiaries' losses. However, during the quarter,
      management determined that the Corporation will be able to utilize
      $9.6 million of these losses resulting in a future income tax asset of
      $3.4 million.

    8  Basic and diluted earnings (loss)  per common share

       Per share amounts have been computed based on the weighted average
       number of common shares outstanding each period. Fully diluted
       earnings (loss) per share is calculated by adjusting outstanding
       shares, assuming any dilutive effects of stock options. For the prior
       period presented, the effect of stock options and warrants were not
       included, as the effect would be anti-dilutive. Consequently, there is
       no difference between the basic and dilutive net loss per share. The
       weighted average number of potential common shares from options and
       warrants for the three month period and nine month period ended
       December 31, 2000 was approximately 1.9 million and 3.2 million.

    The following provides a reconciliation between basic and dilutive
    earnings per share:


                      Three months   Three months   Nine months  Nine months
                        ended           ended          ended        ended
                       December       December       December      December
                       31, 2001       31, 2000       31, 2001      31, 2000
                      ------------   ------------   -----------  -----------

    Earnings before
     amortization
     of goodwill
     and intangibles
     and discontinued
     operations                534            562        2,578        2,179
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------

    Earnings (loss)
     before discontinued
     operations                534         (8,671)       2,578      (19,881)
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------

    Net earnings(loss)         534         (8,813)       2,578      (20,218)
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------

    Weighted average
     number of
     common shares
     outstanding       105,124,190    103,923,538  105,209,335   99,187,475

    Effect of dilutive
     stock options         520,094              -      721,914            -
                      ------------   ------------   -----------  -----------
    Weighted average
     of diluted
     common shares
     outstanding       105,644,284    103,923,538  105,931,249   99,187,475
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------

    Earnings (loss)
     per share before
     amortization of
     goodwill and
     intangibles      $       0.01   $       0.01   $     0.02   $     0.02
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------

    Basic earnings(loss)
     per share before
     discontinued
     operations       $       0.01   $      (0.08)  $     0.02   $    (0.20)
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------

    Basic earnings(loss)
     per share        $       0.01   $      (0.08)  $     0.02   $    (0.20)
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------

    Diluted earnings(loss)
     per share        $       0.01   $      (0.08)  $     0.02   $    (0.20)
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------


    The following provides a reconciliation of the adoption of the new
    pronouncements regarding goodwill and intangibles:


                      Three months   Three months   Nine months  Nine months
                        ended           ended          ended        ended
                       December       December       December      December
                       31, 2001       31, 2000       31, 2001      31, 2000
                      ------------   ------------   -----------  -----------

    Reported net
     earnings (loss)           534         (8,813)       2,578      (20,218)
     Add back
      amortization
      of goodwill and
      intangibles                -          9,233            -       22,060
                      ------------   ------------   -----------  -----------
     Adjusted net
      earnings                 534            420        2,578        1,842
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------

    Basic and dilutive
     earnings (loss)
     per share:
      Reported net
       earnings (loss)$       0.01   $      (0.08)  $     0.02   $    (0.20)
      Amortization of
       goodwill and
       intangibles    $          -   $       0.09   $        -   $     0.22
                      ------------   ------------   -----------  -----------
      Adjusted net
       earnings       $       0.01   $       0.00   $     0.02   $     0.02
                      ------------   ------------   -----------  -----------
                      ------------   ------------   -----------  -----------