|By Marketwired .||
|June 6, 2014 10:30 AM EDT||
JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 06/06/14 -- Net 1 UEPS Technologies Inc. ("Net1" or the "Company") (NASDAQ: UEPS)(JSE: NT1) today announced that it has received approximately ZAR 275 million (or $25.7 million at prevailing exchange rates) from the South African Social Security Agency ("SASSA"), related to the recovery of additional implementation costs incurred during the beneficiary re-registration process in fiscal 2012 and 2013. At the time, SASSA requested Net1 to biometrically register all social grant beneficiaries (including all child beneficiaries), in addition to the grant recipients who were issued with the SASSA-branded UEPS/EMV smart cards. As a result, Net1 performed approximately 11 million additional registrations that did not form part of its monthly service fee. After an independent verification process, SASSA agreed to pay the ZAR 275 million as full settlement of the additional costs incurred.
The decision to re-register all 21 million social grant beneficiaries has enabled SASSA, through the use of Net1's biometric search engine and data analysis tools, to identify and remove any duplicate, invalid and non-existent grant recipients from the grant system. The saving to the South African fiscus to date amounts to approximately ZAR 3 billion per annum due to the elimination of these grants.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that leverage its Universal Electronic Payment System, or UEPS, to facilitate biometrically secure, real-time electronic transaction processing to unbanked and under-banked populations of developing economies around the world in an online or offline environment. Net1's UEPS/EMV solution is also completely interoperable with global EMV standards that seamlessly permit access to all the UEPS functionality in a traditional EMV environment. In addition to payments, UEPS can be used for banking, healthcare management, payroll, remittances, voting and identification.
Net1 operates market-leading payment processors in South Africa, Republic of Korea, and Ghana. In addition, Net1's proprietary Mobile Virtual Card technology offers secure mobile payments and banking services in developed and emerging countries while its MediKredit and XeoHealth subsidiaries provide its proprietary 5010 and ICD-10 compliant real-time claims adjudication system.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.
This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that cause our actual results, levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in our filings with the Securities and Exchange Commission. We undertake no obligation to revise any of these statements to reflect future events.