Dual-listed Net 1 UEPS Technologies says negotiations around its agreement with the South African Social Security Agency (SASSA) to process payments on behalf of the agency have not been wrapped up.
The company had been contracted to process social grants on behalf of the agency, but its deal expired at the end of last month. A new contract has yet to be finalised, it says.
Despite no agreement being in place, Net 1 continues to provide its payment service to the agency and has started processing payouts for the July payment cycle.
Its ongoing discussions with the agency include the evaluation of a number of proposals, including a further contract extension, a new fixed-term contract and the start of a new tender process.
Net 1 says it will update shareholders when an agreement is reached regarding the terms and conditions of any contract extension.
Net 1 provides its universal electronic payment system, or UEPS, as an alternative payment system for the unbanked and under-banked populations of developing economies. Its systems enable payments to about four billion people around the world.
Net 1 has a primary listing on the Nasdaq and a secondary listing on the JSE.
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