Net1 subsidiary awarded SASSA tender
Net1 UEPS Technologies (NT1) on Wednesday confirmed that its wholly owned subsidiary, Cash Paymaster Services has been awarded the tender from the South African Social Security Agency (SASSA) for the provision of payment services for social grants in all of South Africa’s nine provinces for a period of five years.
Net1 provides of alternative payment systems that leverage its Universal Electronic Payment System (UEPS) to facilitate biometrically secure, real-time electronic transaction processing to unbanked and under-banked populations of developing economies.
“We are overjoyed by the SASSA tender award and very proud of the confidence that SASSA has placed in our company and technology,” said Dr. Serge Belamant, chairman and CEO of Net1.
“Our biometric UEPS/EMV technology has enabled us to provide SASSA with a comprehensive, cost effective solution for the payment of approximately fifteen million monthly grants to ten million recipients in rural and urban areas,” Belamant said.
Herman Kotze, CFO of Net1, said: “Given the magnitude of the SASSA tender award, we expect a significant impact on the group’s financial affairs when the contract period commences as a result of new volume and pricing, additional costs, capital expenditure and additional contractual obligations.
“These may have different financial effects in the short-term relative to the long-term benefits to the group,” he said.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE.
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