Net 1 UEPS Technologies Inc.

Net 1 UEPS Technologies Inc.

September 02, 2010 17:08 ET

Net1 Launches Mobile Payments Initiative With a Top Five US Wireless Carrier

PLANO, TEXAS--(Marketwire - Sept. 2, 2010) - Net1 UEPS Technologies, Inc. (NASDAQ:UEPS)(JSE:NT1) today announced that its wholly-owned subsidiary, Net1 Virtual Credit Card, Inc., has launched VCpay™, Net1's cell phone based prepaid virtual payment card application designed for Card-Not-Present ("CNP") transactions with a top five wireless carrier in the United States. In addition, Net1 Virtual Credit Card, Inc. has teamed up with The Bancorp Bank, a wholly-owned subsidiary of The Bancorp, Inc. (NASDAQ: TBBK), FSV Payment Systems and MoneyGram International (NYSE: MGI) to offer a comprehensive card issuing, processing and distribution network to wireless subscribers.

Net1's first distributor for VCpay™, a top five wireless carrier in the United States with several million subscribers, will offer VCpay™ to its prepaid customers as an application that will be pre-loaded on new smart-phones or can be downloaded on select existing devices. VCpay™ allows a subscriber to generate a unique, one-time use prepaid virtual card number to securely purchase goods and services or perform bill payments in any CNP environment. Net1 believes that the VCpay™ application is the first mobile phone-based prepaid program with no requirement for the user to have a physical card or a bank account. Subscribers can load their prepaid virtual accounts with cash at any of MoneyGram's 40,000 U.S. agent locations, which are located in most communities including many grocery, pharmacy and convenience store chains.

"This initiative demonstrates our ability to create technological solutions that are ubiquitous with existing worldwide payment networks, and that require no changes to the commercial agreements that are already in place between issuers, acquirers, networks, transaction processors and the major brand owners. The simplicity of our Virtual Card is only matched by the strength of the security and functionality it provides, and the fact that it operates off-line thus ensuring that the customer experience will always be of the highest standard. This step will mark Net1's entry into the United States, from which we can launch this product on a world-wide basis," said Dr. Serge Belamant, Net1's Chairman and Chief Executive Officer.

"We are extremely pleased to offer VCpay™ to a large base of smart-phone users as a completely secure way to make purchases or bill payments online," said Eric Meniere, President of Net1 Virtual Credit Card, Inc. "Customers are provided with a prepaid account and can generate a one-time-use prepaid virtual card number on their phone, and no browsing nor texting is needed. Our relationship with The Bancorp Bank also provides the foundation from which we can sign up additional distributors for VCpay™ in the United States," he concluded.

"We are excited to announce our relationship with Net1 Virtual Credit Card as it is consistent with our commitment to 'Changing the Way America Pays' through the development of innovative products. We believe it is critical to offer the tools that consumers require to meet their diverse needs and to simplify their payment processes, and VCpay™ is a true example of this," said Jeremy Kuiper, Managing Director – The Bancorp Payment Solutions Group.

About Net1 Virtual Credit Card (

Based in Plano, Texas, Net1 Virtual Credit Card, Inc. is a wholly-owned subsidiary of Net1 UEPS Technologies, Inc. Net1 Virtual Credit Card is a payment solution company created in 2009 to address consumers evolving needs, trends and concerns by creating safe, convenient and flexible mobile payment solutions for everyone.

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. Our market-leading system enables 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. Our universal electronic payment system, or UEPS, uses 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 the Net1 system can enter into transactions at any time with other card holders even in the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, UEPS can be used for banking, healthcare management, international money transfers, voting and identification.

Net1 also focuses on the development and provision of secure transaction technology, solutions and services and offers transaction processing, financial and clinical risk management solutions to both funders and providers of healthcare. 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.

Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.

About The Bancorp Payment Solutions Group

The Bancorp Payment Solutions Group, a division of The Bancorp Bank ("Bancorp"), a wholly owned subsidiary of The Bancorp, Inc. (Nasdaq: TBBK), offers secure, creative and innovative payment solutions to the prepaid card industry. As a leading issuer of prepaid cards, The Bancorp Payment Solutions Group contributes to the success of Fortune 500 companies through the development of cutting-edge prepaid card programs that meet the rapidly changing needs of the prepaid industry. Through long-standing relationships with the MasterCard, Visa, and Discover card associations, leading program managers and processors, The Bancorp Payment Solutions Group designs innovative and flexible prepaid card programs which deliver outstanding results. For more information about The Bancorp Payment Solutions Group please visit

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