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NET 1 UEPS TECHNOLOGIES INC - Net1 invests in MobiKwik, a leading digital payment platform in India

Release Date: 26/08/2016 09:30
Code(s): NT1     PDF:  
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Net1 invests in MobiKwik, a leading digital payment platform in India

Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
(“Net1” or the “Company”)

Net1 invests in MobiKwik, a leading digital payment platform in India

Johannesburg, August 26, 2016 – Net1 (NasdaqGS: UEPS; JSE: NT1) today announced
that it has signed a subscription agreement with One MobiKwik Systems Private Limited
(“MobiKwik”) in India. MobiKwik is India's largest independent mobile payments
network, with over 32 million users and 100,000 retailers. MobiKwik’s current
shareholders include Sequoia Capital, Tree Line Asia, American Express, Cisco
Investments, GMO Payment Gateway and MediaTek, as well as Bipin Preet Singh and
Upasana Taku, the founders and executive officers.

As part of the strategic partnership, Net1 will invest up to $40 million in MobiKwik over
the next 24 months. In addition, through our technology agreement, Net1’s Virtual Card
technology will be integrated across all MobiKwik wallets in order to provide ubiquity
across all merchants in India.

“Our strategic investment in MobiKwik provides us with meaningful participation in one of
the largest and fastest growing digital payment markets globally,” said Serge Belamant,
Chairman and CEO of Net1. “We are excited to partner with one of India’s most utilized
and recognized digital platforms, through which we can introduce our products and
services. We believe that this investment will accelerate our ability to build scale in India.
Over the next three years, MobiKwik has targeted having 150 million users and 500,000
merchants, and the introduction of our various technologies is expected to enhance their
value proposition and differentiation to users, online and offline merchants, increase
acceptance, and accelerate growth. With Net1’s expertise and track record in facilitating
financial inclusion across Africa, our strategic relationship with MobiKwik marks an
important milestone from which we can leverage India’s substantial efforts to drive
financial inclusion, down to the grassroots in rural and deep rural areas. Many of our
solutions, most notably UEPS/EMV, are tailor-made to provide multiple financial and other
services, increase accessibility, eliminate fraud and reduce cash,” he concluded.

According to a July 2016 Google-BCG study, the size of India’s digital payments industry
will reach $500 billion by 2020, representing a ten-fold increase from current levels. The
report predicts that more than 50% of India’s internet users are expected to use digital
payments by 2020, and the top 100 million users are expected to drive 70% of digital
payments by value. The report also predicts that the value of remittances and money
transfers that will pass through alternative digital payment instruments will double to 30%
by 2020.

There are many similarities between South Africa and India including highly regulated
markets, limited infrastructure and large unbanked populations. There have always been
close ties and there is growing cooperation between the two countries, culminating with
Indian Prime Minister Narendra Modi’s visit to South Africa last month. This transaction
lends further support to their efforts to drive improving bilateral relations in trade and
investment.

Upasana Taku, the co-founder of MobiKwik said, “We are excited about our partnership
with Net1 and look forward to learning from their best practices in serving the un-banked
and under-banked users, while taking progressive steps towards making India a cashless
economy. Our pioneering innovations in the fintech industry have helped us maintain this
lead position and with support from strategic partners such as Net1, we look forward to
further strengthening our product offering and realize our vision to let users save, borrow,
pay and invest using MobiKwik.”

About Net1 (www.net1.com)

Net1 is a leading provider of alternative payment systems that leverage its Universal
Electronic Payment System (“UEPS”) or utilize its proprietary mobile technologies.
The Company operates market-leading payment processors in South Africa and the
Republic of Korea. Through Transact24, Net1 offers debit, credit and prepaid processing
and issuing services for Visa, MasterCard and ChinaUnionPay in China and other
territories across Asia-Pacific, Europe and Africa, and the United States. Through
Masterpayment, Net1 provides payment processing and enables working capital financing
in Europe.

UEPS permits the Company 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
interoperable with global EMV standards that seamlessly enable 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’s mobile technologies include its proprietary mobile payments solution - MVC, which
offers secure mobile-based payments, as well as mobile banking and prepaid value-added
services in developed and emerging countries. The Company intends to deploy its varied
mobile solutions through its ZAZOO business unit, which is an aggregation of innovative
technology companies and is based in the United Kingdom.

Net1 has a primary listing on the NASDAQ and a secondary listing on the Johannesburg
Stock Exchange.

About MobiKwik (www.mobikwik.com)

MobiKwik, is India's largest independent mobile payments network, connecting 32 million
users with 100,000 retailers. Founded in 2009 by Bipin Preet Singh and Upasana Taku, the
company has raised three rounds of funding from Sequoia Capital, American Express, Tree
Line Asia, MediaTek, GMO Payment Gateway and Cisco Investments. MobiKwik aspires
to be the largest source of digital transactions in India.

One of the leading digital payments platforms for online and offline merchants, MobiKwik
is powering payments for IRCTC, Uber, Meru Cabs, Big Bazaar, OYO Rooms, Zomato,
PVR, Archies, WHSmith India, BookMyShow, Grofers, Big Basket, Domino's, Burger
King, Pizza Hut, eBay, ShopClues, Myntra, Jabong, Pepperfry, Barista, Food Panda,
nearbuy, Van Heusen, Allen Solly, Louis Phillips, GoDaddy, MakeMyTrip, Cleartrip, and
Yatra.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and
uncertainties. All statements, other than statements of historical fact, included in this press
release regarding strategy, future operations, future financial position, future revenues,
projected costs, prospects, plans and objectives of management are forward-looking
statements. The Company may not actually achieve the plans, intentions or expectations
disclosed in its forward-looking statements. Actual results or events could differ materially
from the plans, intentions and expectations disclosed in the forward-looking statements that
the Company makes. Factors that might cause such differences include, but are not limited
to: the risk that the Company’s business and the MobiKwik business will not be integrated
successfully; the possibility that the expected synergies from the investment will not be
realized, or will not be realized within the expected time period; disruption from the
investment making it more difficult to maintain business and operational relationships; and
other factors, many of which are beyond the Company’s control; and other important
factors included in the Company’s reports filed with the Securities and Exchange
Commission, particularly in the “Risk Factors” section of the Company’s Annual Report on
Form 10-K for the fiscal year ended June 30, 2016, as such Risk Factors may be updated
from time to time in subsequent reports. The Company does not assume any obligation to
update any forward-looking statements, whether as a result of new information, future
events or otherwise.

Investor Relations Contact:
Dhruv Chopra
Head of Investor Relations
Phone: +1-917-767-6722
Email: dchopra@net1.com

MobiKwik Media Contact:
Jagriti Motwani
GM – Public Relations
Phone: +91-99101-44661
Email: Jagriti.motwani@MobiKwik.com

Johannesburg
August 26, 2016

Sponsor:
Deutsche Securities (SA) Proprietary Limited

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