Net 1 UEPS Technologies Inc.

Net 1 UEPS Technologies Inc.

June 07, 2006 16:24 ET

Net1-Creates New "Cash Advance" Product for the Botswana Market

JOHANNESBURG, SOUTH AFRICA--(CCNMatthews - June 7, 2006) - Net1 UEPS Technologies, Inc. (NASDAQ:UEPS) ("Net1" or the "Company") announced today that its subsidiary, Net1 Applied Technologies South Africa Limited, has created a new financial services product "Cash Advance" for implementation in Botswana through its joint venture initiative SmartSwitch Botswana.

The Botswana Implementation Project is on target, with the initial scoping of the work in the final stages of completion and the commencement of the customization of the back-end system and specific smart card applications. One of Net1's new products, namely "Cash Advance" will be launched amongst others in Botswana.

The "Cash Advance" product will provide an issuer with the facility to offer small monthly cash advances to U.E.P.S. cardholders at POS terminals installed at participating merchants, bank branches and the offices of micro-financiers. Access to short term advances is not readily available in most countries due to the high operational expenses associated with the management of recurring application forms and the collection of the total remittance, particularly in the semi-urban and rural environments. This normally results in individuals borrowing from family and friends in order to address their most pressing financial needs. The new product allows the cardholder to receive a cash advance, calculated off-line by the client's card, taking into account the monthly income previously received by the card, the frequency and regularity of credits as well as any current deductions in respect of short term loans, insurance premium and the like. When, for example, the next wage is paid on the card, the full amount of the previously granted cash advance plus the associated finance charges will be automatically deducted and remitted to the financier. The cardholder will then be in a position to qualify for a new cash advance as and when required.

About Net1 (

Net1 provides its universal electronic payment system, or 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, the company 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 card holders 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.

This announcement may contain forward-looking statements pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements, such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, development difficulties, foreign currency risks, costs of capital, the ability to consummate and integrate acquisitions, and other risks detailed in the Company's SEC filings. The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

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

Contact Information

  • Net 1 UEPS Technologies Inc.
    William Espley
    Investor Relations
    (604) 484-8750 or Toll Free: 1-866-412-NET1 (6381)