Profile: Net 1 UEPS Technologies Inc (NT1J.J)
13 Jun 2019
Net 1 UEPS Technologies, Inc., incorporated on May 8, 1997, is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.
As of June 30, 2016, the Company distributes pension and welfare payments, using its universal electronic payment system/ EuroPay, MasterCard and Visa global standard (UEPS/EMV) technology, to over 10 million recipient cardholders across the country, process debit and credit card payment transactions on behalf of a range of retailers through its EasyPay system, process value-added services, such as bill payments and prepaid airtime and electricity, for the bill issuers and local councils in South Africa, and provides mobile telephone top-up transactions for all of the South African mobile carriers. The Company is organized into business units, which include ZAZOO Limited (ZAZOO), KSNET, Inc. (KSNET), Masterpayment AG (Masterpayment), Transact24 Limited (Transact24), Cash Paymaster Services Proprietary Limited (Cash Paymaster Services), EasyPay, Financial Services, Applied Technology, XeoHealth and Corporate.
The Company's ZAZOO business unit is engaged in the technical development and commercialization of its range of Web and mobile applications and payment technologies. ZAZOO offers a range of products and services, which include Mobile Virtual Card (MVC) & Verification; Third Party Payments; Prepaid Vending; Chip & subscriber identity module (SIM); Custom Development, and Cryptography. Its MVC technology addresses the needs of the mobile payment market. Its MVC technology provides a secure, off-line payment solution for card-not-present transactions, such as payments made for Internet purchases. The MVC technology runs as an application on any mobile phone and utilizes its cryptographic card generator to secure any payment transaction. Through FIHRST, the Company provides third party and payroll associated payments in South Africa. It also offers the PayPlus service, providing employees with access to prepaid airtime, electricity and other value added services (VAS). Its Prepaid Vending business line handles multichannel distribution of electronic products and services. It provides specialized solutions for mobile network operators (MNOs). Its solutions range from Advance Airtime and Mobile Wallet technology to Short Message Service (SMS) Mega Promotions, made for each MNO with a focus to maximize subscriber activity, brand perception and profitability. Through its partnerships with MNOs, as well as card and semiconductor manufacturers, it provides a chip and SIM solutions. All of these offerings include its range of Global System for Mobile communication (GSM) Masks and custom software that enables mobile telephony, transactions and on-chip VAS. The Custom Development business line produces solutions that span across Web, Mobile, Server, point of sale (POS) and Desktop environments. It develops both client-facing and background services, with coverage on every relevant platform, including Mobile, such as Android, iPhone operating system (iOS), BlackBerry, Windows Phone 8 and Java 2 Platform, Micro Edition (J2ME) and Web (with full cross-browser compatibility). Its Cryptography business line focuses on security-orientated products, which include its range of PIN encryption devices, card acceptance modules and Hardware Security Modules. These focus on financial, retail, telecommunications, utilities and petroleum sectors. The ZAZOO business unit is allocated to its South African processing, International transaction processing, and Financial inclusion and applied technologies segments.
The Company's KSNET business unit is a national payment solutions provider. KSNET has product offerings in the South Korean payment solutions market, a base of approximately 225,000 merchants and a direct and indirect sales network. As of June 30, 2016, KSNET's operations comprise three project offerings, namely card value-added network (VAN), payment gateway (PG) and banking VAN. KSNET's card VAN offering manages credit and other non-cash alternative payment mechanisms for retail transaction processing for a range of merchants and every credit card issuer in South Korea. Non-cash alternative payment mechanisms for which KSNET provides processing services include various credit and debit cards and e-currency (K-cash and TMoney). KSNET also records cash transactions for the South Korean National Tax Service in the form of cash receipts. PG provides these merchants with a host of alternative payment solutions, including the ability to accept credit and debit cards, gift and other prepaid cards, and bank account transfers. PG also provides virtual account capabilities. KSNET's banking VAN operations include account transaction processing services, payment and collections to banks, corporate firms, governmental bodies and educational institutions. The KSNET business unit is allocated to its International transaction processing segment.
The Company's Masterpayment business unit is a specialist payment services processor. Masterpayment provides payment and acquiring services for all European debit and credit cards, and invoicing for online retail, digital goods and content. As of June 30, 2016, Masterpayment has a client portfolio of approximately 5,000 registered merchants. Masterpayment provides its e-commerce merchants with working capital optimization by providing a flexible form of financing, which employs a trading transaction instead of traditional bank credit. Masterpayment's Finetrading product enables the seamless financing of a merchant's inventory orders, resulting in accelerated payment settlement and the elimination of the requirement for a merchant to maintain rolling reserves or cash advances. The Masterpayment business unit is allocated to its International transaction processing segment.
The Company's Transact24 business unit is a payment services provider. Its primary business activities include Chinese debit card acquiring, Credit card acquiring, Automated clearing house, and Prepaid card issuing and processing. Transact24 has processing relationships with China UnionPay, Alipay and other Chinese gateways. Transact24 has acquiring relationships with banks and processing institutions in the United Kingdom, Germany, Australia and Mauritius, and has Payment Intermediary Services Licenses in Mauritius and an Electronic Money Institution License in the United Kingdom. Transact24 also offers a white-labeled credit card acquiring gateway to entities wanting to outsource the technical integration and operations of their acquiring gateways. Transact24 provides unsecured loan automated clearing house (ACH) processing for Tribal and State-licensed lenders in the United States. Transact24 issues the United States dollar-denominated Visa prepaid cards, South African Rand-denominated MasterCard prepaid cards and Hong Kong dollar-denominated China UnionPay prepaid cards. The Transact24 business unit is allocated to its International transaction processing segment.
Cash Paymaster Services
The Company's CPS business unit deploys its UEPS/EMV Social Grant Distribution technology to distribute social welfare grants on a monthly basis to over nine million recipient cardholders in South Africa as of June 30, 2016. These social welfare grants are distributed on behalf of the South African Social Security Agency (SASSA). CPS provides a transacting channel between social welfare grant recipient cardholders, beneficiaries, SASSA and formal businesses. CPS enrolls social welfare grant recipient cardholders and, as appropriate, the respective beneficiaries by issuing the recipient cardholder with a UEPS/EMV smart card that digitally stores their biometric fingerprint templates on the card, enabling them to access their social welfare grants securely at any time or place and providing them with a fully-fledged bank account. The smart card is issued to the recipient cardholder on site and utilizes optical fingerprint sensor technology to identify and verify a recipient cardholder. The recipient cardholder inserts a smart card into the POS device and is prompted to present his fingerprint. If the fingerprint matches the one stored on the smart card, the smart card is loaded with the value created for that particular smart card. The smart card provides the holder with access to all of the UEPS functionality, which includes the ability to have the smart card funded with pension or welfare payments, make retail purchases, use of the convenience of prepaid facilities and qualify for a range of affordable financial services, including insurance and short-term loans, as well as standard EMV transactional capabilities to operate wherever MasterCard is accepted. The smart card also offers the card holder the ability to make debit order payments to a range of third parties, including utility companies, schools and retail merchants, with which the holder maintains an account. The card holder can also use the same smart card as a savings account. The CPS business unit is allocated to its South African transaction processing and Financial inclusion and applied technologies segments.
The Company's EasyPay business unit operates the bank-independent financial switch in South Africa. EasyPay focuses on the provision of payment, prepayment and value-added services to the South African market. EasyPay's infrastructure connects into all South African banks and switches both debit and credit card electronic funds transfer (EFT) transactions for some of South Africa's retailers and petroleum companies. EasyPay switches credit, debit and fleet card transactions for South African retailers and petroleum companies. EasyPay offers consumers a point-of-sale bill payment service, which is integrated into a range of national retailers, the Internet, self-service kiosks and mobile handsets. EasyPay processes monthly account payment transactions for a range of bill issuers, including local authorities, telephone companies, utilities, medical service providers, traffic departments, mail order companies, banks and insurance companies. EasyPay enables local utility companies, such as Eskom Holdings Limited and a range of local authorities on a national basis to sell prepaid electricity to their customers. EasyPay vends airtime at retail POS terminals for all the South African mobile telephone network operators. EasyPay supports the electronic generation, issuance and redemption of paper or card-based gift vouchers. EasyPay enables the issuance of South African Broadcasting Corporation (SABC), television licenses and the capturing of existing license details within retail environments through a Web-based user interface. EasyPay switches transactions from retail POS systems to the relevant back-end systems. EasyPay's infrastructure supports the hosting of payment or back-up servers and applications on behalf of third parties, including utility companies. It has developed a biometrically enabled self-service kiosk that allows its customers to access all the value-added services provided by EasyPay and to create and load their EasyPay virtual wallets with value. Its EasyPay Web and Mobile service enables EasyPay customers to access all the value-added services provided by EasyPay, such as bill payments and the purchase of prepaid airtime and utilities, through a secure Website that may be accessed through personal computers or through mobile handsets. EasyPay provides around the clock monitoring and support services, reconciliation, automated clearing bureau settlement, reporting, full disaster recovery and redundancy services. The EasyPay business unit is allocated to its South African transaction processing segment.
The Company has developed a suite of financial services that is offered to customers utilizing its payment solutions. The Company provides its UEPS/EMV cardholders with competitive transacting accounts, microfinance, life insurance and money transfer products. Its product, EasyPay Everywhere, provides its target market with an all-inclusive transactional bank account with unfettered access to financial services, such as microloans, life insurance, remittances, value added services, such as prepaid utilities and bill payments through their mobile phones and its national network of automated teller machines (ATMs) and POS devices. It provides short-term microloans to its South African UEPS/EMV cardholders. Its Smart Life business unit owns a life insurance license and offers its customer base insurance products applicable to this market segment, focusing on group life and funeral insurance policies. The Financial Services business unit is allocated to its Financial inclusion and applied technologies segment.
The Company's Applied Technology business unit is engaged in the deployment of its South African ATM and POS network and the sale of biometric and POS solutions to various South African banks, retailers and financial services providers. It deploys its ATMs in areas where its UEPS/EMV cardholders have limited access to the national payment system, or where the cost of accessing the national payment system through other service providers is prohibitive for its cardholders. The Applied Technology business unit is allocated to its South African transaction processing and Financial inclusion and applied technologies segments.
The Company's XeoHealth business offers its XeoRules real time adjudication (RTS) solutions for the end-to-end electronic processing of medical claims information in the United States. XeoHealth has a range of projects in the United States either as the primary contractor for the provision of its RTS solution to customers, or as a sub-contractor to parties contracted to provide an adjudication solution. The XeoHealth business unit is allocated to its International transaction processing segment.
The Company competes with Visa, MasterCard, JCB, American Express, BankservAfrica, UCS, eCentric, Transaction Junction, ATM Solutions, Spark ATM Systems, NICE Information & Telecommunication Inc., Korea Information & Communications Company, Inc., Barclays, Citigroup, Apple, Google, Samsung, PayPal, AT&T, Verizon, Vodafone, MTN and Bharti Airtel, M-Pesa and Square.
Net 1 UEPS Technologies Inc
1540 GLENWAY DR