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Net1 launches one of the world’s largest virtual card programs with MobiKwik and IDFC Bank
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 launches one of the world’s largest virtual card programs with MobiKwik and
IDFC Bank
Over 260 million users will eventually have access to MobiKwik’s virtual Visa prepaid
card in phases, with 65 million existing users part of the first phase.
Johannesburg, November 9, 2017 – Net1 (NasdaqGS: UEPS; JSE: NT1) today announced
that One MobiKwik Systems Private Ltd. (“MobiKwik”) has launched one of the largest
global virtual card programs in partnership with IDFC Bank Ltd (“IDFC Bank”) and Visa
using Net1’s proprietary virtual card technology in India. The virtual prepaid card is
currently available by invitation only, and will be rolled out to all MobiKwik Android and
iOS users in early December 2017.
MobiKwik users will gain access to a co-branded IDFC virtual card embedded within the
MobiKwik app, allowing them to make digital purchases at all e-commerce merchants
easier and faster. This partnership also marks IDFC Bank’s biggest foray into the prepaid
card segment and enhances MobiKwik’s acceptance across Visa’s network. Consumer
spending through electronic channels represent a small fraction of overall spend in India,
and the proliferation of new payment instruments such as virtual cards is driving the
adoption of digital payments.
“The successful roll-out of one of our flagship products at such scale in India further
reinforces our focus and investments in India,” said Herman Kotze, CEO of Net1. “This
combined initiative facilitates two key components of financial inclusion, namely
accessibility and interoperability, and supports the Indian government’s coordinated effort
to move to a less-cash world,” he concluded.
“On the first anniversary of demonetization, we are happy to note that Indians are fast
developing a digital mindset, and paying with the MobiKwik wallet has become a habit for
millions of Indians. The IDFC co-branded virtual card by Net1, will enable MobiKwik
users to transact digitally across millions of merchants both on the MobiKwik and Visa
networks,” said Upasana Taku, Co-Founder of MobiKwik.
“The prepaid card space is evolving fast, encouraged by technological disruption and
growing preference for digital payments,” said Avtar Monga, Executive Director, IDFC
Bank. “This marks the beginning of a long-term strategic alliance where each partner can
leverage their respective strengths. We are delighted to partner with MobiKwik, Visa and
Net1 for one of the largest ever issuances of prepaid cards,” he concluded.
Over the past few months, MobiKwik has formed a string of strategic partnerships with
leading blue-chip Indian brands such as BSNL, Bajaj Finserv and IndusInd Bank, thus
starting to impact almost 260 million Indians.
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. 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 failure by the Company to
realize the anticipated benefits from these transactions; 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, 2017, 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.
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, ChinaUnionPay, Alipay and WeChat 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.
Net1 has a primary listing on the NASDAQ and a secondary listing on the Johannesburg
Stock Exchange.
About MobiKwik:
MobiKwik is India’s largest issuer-independent digital financial services platform, a
mobile wallet major and a leading payment gateway. MobiKwik app is a leading mobile
payment platform with a network of over 20,00,000 direct merchants and 65 million plus
users. Founded in 2009 by Bipin Preet Singh and Upasana Taku, the company has raised
four rounds of funding from Sequoia Capital, American Express, Tree Line Asia,
MediaTek, GMO Payment Gateway, Cisco Investments Net1 and Bajaj Finance. It has
expanded to cities like Pune, Mumbai, Bangalore, Kolkata and Jaipur and planning to set
up offices in 13 cities by the end of 2017.
In 2017, MobiKwik has forged a string of smart partnerships with leading blue-chip
brands such as BSNL, Bajaj Finserv Ltd and IndusInd Bank, thus starting to impact
almost 260 million Indians. In August 2017, BSNL went digital by launching a bespoke
mobile wallet developed and issued by MobiKwik. Recently, the company has partnered
with Bajaj Finserv Ltd. to develop an EMI wallet through which customers can avail
credits and loans. Bajaj Finserv-MobiKwik wallet is also India’s first credit wallet.
MobiKwik has also developed India’s first auto-load wallet for IndusInd Bank’s 10
mIllion plus customers, who can make purchases just by tapping their wallet and their
money gets automatically debited from their IndusInd account.
The company has offices in New Delhi, Mumbai, Bangalore, Pune and Kolkata.
MobiKwik aspires to be the largest source of digital transactions in India. It is powering
e-payments for Bhopal Plus, Bangalore One, GSRTC, Amul, Mother Dairy, Safal,
NHAI, Bharat Petroleum, Indian Oil, Amul, IRCTC, Uber, Meru Cabs, Big Bazaar, OYO
Rooms, Zomato, PVR, Archies, WHSmith India, BookMyShow, Grofers, Big Basket,
Dominos, Burger King, Pizza Hut, eBay, ShopClues, Myntra, Jabong, Pepperfry, Barista,
Food Panda, Nearbuy, Van Heusen, Allen Solly, Louis Phillips, GoDaddy, MakeMyTrip.
About IDFC Bank:
IDFC Bank (BSE: 539437, NSE: IDFCBANK) is a subsidiary of IDFC Ltd (BSE: 532659,
NSE: IDFC). Headquartered in Mumbai, IDFC Bank is a universal bank, offering financial
solutions through its nationwide branches, internet and mobile. Envisioned as a new age
bank, IDFC Bank seeks to set a new standard in customer experience, using technology
and a service-oriented approach, to make banking simple and accessible, anytime and from
anywhere. In keeping with IDFC’s legacy of building the nation, IDFC Bank will focus on
serving the rural underserved communities and the self-employed, while continuing to
support the country’s infrastructure sector. IDFC Bank provides customized financial
solutions to corporates, individuals, small and microenterprises, entrepreneurs, financial
institutions and the government. With best-in-class corporate governance, rigorous risk
management, experienced management and a diversified team, IDFC Bank is uniquely
positioned to meet the aspirations of its customers and stakeholders. www.idfcbank.com
or Twitter, Facebook and LinkedIn
Net1 Contact:
Dhruv Chopra
Managing Director, Net1 India
Phone: +1-917-767-6722/+91-99304-65688
Email: dchopra@net1.com
Media Relations Contact:
Bridget von Holdt
Business Director – Burson-Marsteller South Africa
Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com
Johannesburg
November 9, 2017
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
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