NamITech Limited, IT subsidiary of the Nampak Group, has announced a technology upgrade of its existing welfare grant payment system to a more secure solution combining smart cards and biometrics. The project is believed to be the first solution of its kind in SA to operate successfully from commencement of the initial pilot, in April 2002.
"Since July 2000, NamITech has held the IT outsource contract for the supply and maintenance of the entire Empilweni Payout Services offering to the Mpumulanga Government," explains Chris Steyn, Managing Director of NamITech Financial Services. "Our secure end-to-end transportable payout solution involves the payment of welfare grants to beneficiaries in rural areas, using their identity document and a fingerprint scan to verify identity.
"The advanced solution eliminates the need for IDs and uses the more secure method of smart cards to store personal details of the beneficiary. The smart cards are able to carry confidential information about the individual including name and identity number," says Steyn. "The benefit of this upgrade is that all the required information is already stored on the central database and can be easily transferred to a smart card. A fingerprint biometric will still verify the data on the smart card before payment may be made."
Using the new system, to commence the payment process the beneficiary inserts his smart card into the smart card reader installed on the payout machine. The last transaction number stored on the card is compared with the transaction number in the system database, to ensure that the beneficiary has not yet been paid. The biometric template is read off the card or from the local database, if this is available, following which the beneficiary places his finger on the fingerprint reader. If the fingerprint verification is successful, the kiosk dispenses the amount owing to the beneficiary, takes a digital photograph of the beneficiary and the card data is updated and ejected.
To ensure security, once the beneficiary has been paid, a new transaction number is written to the card. A transaction record is created, with the date/time stamp, the beneficiary paid, and the fingerprint used for authentication. A receipt is then printed for the beneficiary.
"One of the major benefits of moving to a smart card-based solution is that it provides mobility to the registered beneficiaries," says Steyn. "They will now be able to claim benefits even when they are away from their regular place of abode, such as when visiting friends and family, provided the payment station falls within the Empilweni Payout Services umbrella."
The rationale behind the upgrade of the system was to help bring it in line with government`s strategic intent, as part of its technology re-engineering project, to make it possible for welfare recipients to receive payment securely at any payment station, at any time. The ultimate intention is that within five years, every person will be paid via smart card and will be able to in turn utilise the value on the card to effect payment at various stores and retailers via an ePurse. The migration towards a cashless environment will aid in the prevention of fraud and corruption currently experienced in the welfare payments arena.
The new smart card project went live at the beginning of May 2002 and NamITech is currently supplying 20 000 cards per month to the Empilweni project, and the upgraded system will be rolled out over the next six months. Some 160 000 beneficiaries were enrolled on the existing system within three months and payment commenced from month four. The system has proved to be extremely stable and is now paying 180 000 beneficiaries from 36 workstations over 13 days per month.
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NamITech Ltd is the secure technology provider within the established Nampak group of companies, focusing on a number of key market areas to provide leading-edge technology solutions.
NamITech Financial Services offers a broad range of secure products and solutions to the financial sector, including banks, insurance companies and stockbrokers. It is uniquely positioned to offer its banking customers seamless end-to-end card solutions through extensive experience in the banking environment, and its ability to source manufactured microprocessor smart cards from its sister company, ICT.
At the heart of the company is the provision of secure end-to-end business solutions and the development and implementation of value-added applications stemming from the intelligent use of smart cards and the latest technology. NamITech`s core areas of expertise are secure card technology, payment solutions and enterprise security solutions. Trust is embedded in all its business solutions and NamITech brings accountability to the converging world of electronic transacting and commerce.
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