Norwood Systems Ltd. and Affinion International Ltd. are announced that they have formed an initial three-year partnership and agreed a set of commercial terms for wholesale and/or white label distribution of Norwood's consumer World Apps, World Phone and World Wi-Fi. The terms of the distribution agreement will enable Affinion to develop downstream offers for their loyalty program clients, initially utilizing white label custom versions of World Phone that include bundles of pre-paid calling minutes to 94 landline and 60 mobile network destinations around the world. Customized versions of World Wi-Fi will be incorporated into Affinion's portfolio shortly after its public release. The new partnership will see Norwood's World Apps integrated alongside other valuable loyalty program benefits to create compelling packaged loyalty and reward offerings for Affinion's clients that incorporate innovative digital services enabled by World Phone and World Wi-Fi. Affinion's clients include leading credit card processors and issuers, frequent flyer and retail loyalty programs and other customer engagement programs. The inclusion of App-based services such as World Phone in loyalty programs fits with the trend for credit card and other rewards schemes to focus on the digital benefits increasingly demanded by today's tech-savvy consumer. As credit card interchange fees are being squeezed by regulators, card issuers are increasingly looking to membership-based loyalty programs to supplement their income from card users. Under the agreed terms, Norwood will initially offer World Phone together with specified amounts of included minutes in several tiered wholesale bundles, direct to Affinion to on-sell to their clients. Norwood will be paid a high-margin Software as a Service (SaaS) monthly fee for every end customer offered the World Phone benefits bundle as part of their loyalty program, in addition to upside revenue potential arising from usage of the World Phone service beyond the initial bundled minutes. The distribution agreement further anticipates paid systems development (to be finalized) for Norwood to integrate Affinion's Loyalty and Engagement platform with Norwood's services platforms, and the paid creation of white label versions of World Phone, in line with the branding and functional requirements of Affinion's clients. As a precursor to this distribution agreement, Affinion and Norwood jointly presented both the World Phone and World Wi-Fi loyalty propositions to selected major Affinion clients. Both parties were very encouraged by the clients' initial responses to the Norwood World Apps propositions.