Net1 Increases Footprint in Iraq
December 01 2008 - 3:01PM
Marketwired
Net 1 UEPS Technologies Inc. (NASDAQ: UEPS)(JSE: NT1) ("Net1" or
the "Company") today announced that it has received an order for an
additional 800,000 smart cards to be issued to war victim
beneficiaries and pension payment recipients. This additional order
follows the recent order of 200,000 smart cards received during
October 2008. The total cards ordered from Net1 to date amount to
1.1 million. Delivery of the 1 million cards will be 200,000 per
month between December 2008 and May 2009. Completion of cardholder
registration is anticipated for June 2009.
In August 2008, Net1's UEPS system was implemented in Iraq and
is used for the distribution and payment of government grants to
war victims and martyrdom beneficiaries, as well as salary and wage
distribution and payment to employees of the two state banks. The
pilot system was successful and for the first time in history the
two state banks are opening their doors to the public seven days a
week to cater for the flood of beneficiaries wanting to register
for their smart cards.
Brenda Stewart, Net1 Senior Vice President Sales and Marketing,
said, "We are really excited and proud of the commitment displayed
by both the Iraqi and Net1 teams. This additional order is the
result of the successful pilot system deployed during the month of
September 2008."
"Iraq is virgin territory for the UEPS and we look forward to
Phase 2 implementation which involves the rollout of the POS
terminals into merchant stores, the commencement of electronic bill
payments, money transfers, loan deductions, cash advances and
traditional banking functionality. The UEPS enables countries to
tap into the un-banked markets, encourage savings, allowing the
banks to re-invest the monies deposited and in-turn grant
affordable loans to the small and medium term businesses assisting
towards the growth of the economy" Stewart concluded.
About Net1 (www.net1ueps.com)
Net1 provides its universal electronic payment system ("UEPS"),
as an alternative payment system for the unbanked and under-banked
populations of developing economies. The company believes that it
is the first company worldwide to implement a system that can
enable the estimated four billion people who generally have limited
or no access to a bank account to enter affordably into electronic
transactions with each other, government agencies, employers,
merchants and other financial service providers. To accomplish
this, Net1 has developed and deployed the UEPS. This system uses
secure smart cards that operate in real-time but offline, unlike
traditional payment systems offered by major banking institutions
that require immediate access through a communications network to a
centralized computer. This offline capability means that users of
Net1's system can enter into transactions at any time with other
cardholders in even the most remote areas so long as a portable
offline smart card reader is available. In addition to payments and
purchases, Net1's system can be used for banking, health care
management, international money transfers, voting and
identification.
Net1 also focuses on the development and provision of secure
transaction technology, solutions and services. Its core
competencies around secure online transaction processing,
cryptography and integrated circuit card (chip/smart card)
technologies are principally applied to electronic commerce
transactions in the telecommunications, banking, retail, petroleum
and utilities market sectors. These technologies form the
cornerstones of the "trusted transactions" environment of Prism, a
South African based subsidiary of the company, and provide the
Company with the building blocks for developing secure end-to-end
payment solutions.
Net1 recently acquired 80.1% of BGS Smartcard System AG ("BGS"),
an Austrian company, whose core business consists of developing and
integrating smart card-based offline and online financial
transaction systems. Since 1993, BGS has implemented tailor-made
smart card-based payment solutions, focusing on emerging economies
and in cooperation with banks, enterprises and government
authorities. BGS is headquartered in Vienna, Austria, and has
subsidiaries in India and Russia, and a branch office in the
Ukraine. Distributors are located in Asia, Central and South
America, the Commonwealth of Independent States and the Middle
East.
Forward-Looking Statements
This announcement contains forward-looking statements that
involve known and unknown risks and uncertainties. A discussion of
various factors that could cause the Company's actual results,
levels of activity, performance or achievements to differ
materially from those expressed in such forward-looking statements
are included in the Company's filings with the Securities and
Exchange Commission including the risk factors contained in our
Annual Report on Form 10-K for the year ended June 30, 2008. The
Company undertakes no obligation to revise any of these statements
to reflect future circumstances or the occurrence of unanticipated
events.
NET 1 U.E.P.S. TECHNOLOGIES INC.
4th Floor, North Wing,
President Place, Cnr. Jan Smuts Avenue and Bolton Road
Rosebank, Johannesburg, South Africa
TEL: 011-27-11-343-2000 FAX: 011-27-11-880-7080
Contacts: Net 1 UEPS Technologies Inc. William Espley Investor
Relations (604) 484-8750 or Toll Free: 1-866-412-NET1 (6381)
Website: www.net1ueps.com
Net 1 Ueps Technologies (NASDAQ:UEPS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Net 1 Ueps Technologies (NASDAQ:UEPS)
Historical Stock Chart
From Jul 2023 to Jul 2024