Net1 U.E.P.S.
The Universal Electronic Payment System (U.E.P.S.) makes use of the Net1 patented Funds Transfer System (FTS) methodology and through secure smart cards operating in real-time but offline it provides a fully integrated payment, switching and settlement solution suitable for multiple applications and services for un-banked and under-banked populations.
Its offline capability allows card holders to transact with other users at any time in even the remotest of areas where traditional payment systems offered by major banking institutions have limited penetration or are unavailable due to no, or limited branch, ATM, POS and communications infrastructure.
All transactions managed through the U.E.P.S. occur between two cards at a Point-Of-Sale (POS) rather than through a host mainframe (as with traditional banking and payment systems). All relevant information needed to perform financial transactions is held on the smart cards, including details about the funds available to the transacting card holder. As a result, the transfer of value between cards can take place without communication to an online host mainframe since validations, audit trails, encryption, decryption and authorization all take place between the cards themselves.
Key Features
- AFFORDABILITY: Most transaction costs are borne by organizations making use of the channel, also there are minimal monthly fixed fees payable by cardholders.
- SECURITY: The card serves as a substitute for cash, but provides for loss tolerance which protects the card holder in the event of lost or stolen cards.
- SIMPLICITY: A biometric fingerprint identification system is used by the cardholder to access the card and perform transactions.
System Benefits
Individuals:
- There is no minimum income requirement for individuals to use system smart cards - this makes the system universally accessible.
- It is relatively inexpensive since overall system costs are significantly less than other widely available solutions, including cash, bank accounts and bank cards using online access.
- The solution has the advantage of working everywhere, including remote areas where many un-banked and under-banked people live.
- The solution is secure and smart cards are replaceable.
- The collection of payments can occur directly from the smart card, helping individuals to establish a credit history.
Merchants and Financial Service Providers:
- The system decreases the amount of cash that merchants must hold, improving security and reducing expenses.
- Transaction records generated by the system provide useful administrative data.
- Financial Services provided through the POS infrastructure allow merchants to benefit from new income streams at no additional incremental cost.
- For formal financial service providers the use of smart cards provides opportunities to directly sell products and services to a market that was previously difficult to reach. For instance, insurance companies can offer their products with the premium deducted directly from the individual’s smart card.
- In the case of lending, administrative costs and the expense of holding cash are decreased. Again, the collection of payments can occur directly from the smart card, reducing credit risk and helping to establish credit history.
Employers:
- The system enables employers to eliminate cash from the wage payment process.
- This reduces expenses by avoiding cash handling and management, the need to insure or transport that cash and the bank transaction fees associated with obtaining cash in the first place.
Government Agencies:
- A fundamental policy goal for almost any government is to enhance the welfare of the poorest citizens in the country, yet the use of cash is a poor method for delivering social welfare grants. Cash is difficult to track and recipients are faced with various expenses and endure dangers that reduce the options available to them. U.E.P.S. assists government agencies by reducing the costs associated with the delivery of benefits by eliminating the use of cash and increasing available options.