Today`s society is convenience-driven, from take-away food and drive-thru`s to ATMs and Internet banking, the 21st century is about dealing with previously time-consuming, often irritating chores as quickly as possible so as not to `steal` time from the things we would prefer doing.
Hence the fact that the adoption rate of mobile technology and specifically the use of cellular phones has been faster and more ubiquitous than any consumer technology ever experienced before.
"Evolving technology, in the SIM, the handset and the software environment on the handset, has led to more and more innovative and exciting offerings from a host of vendors and service providers. This, together with growing acceptance of these alternative modalities of payment, transacting and banking has given rise to a second, more sustainable wave of innovation in cellular payment solutions," says Andrew Turpin, Director - Payment Solutions Division at Prism.
The ultimate convenience of paying bills, including traffic fines and prepaid electricity, from the mobile handset with absolute security, is already a reality with Prism`s EasyPay over Mobile technology.
Another mobile application, first piloted in 2005, is Prism`s technology enabling prepaid electricity consumers to access their entitlement of free basic electricity (FBE) using a standard cellular handset.
One of the more exciting developments facilitated as a result of mobile transacting is the creation of new business models, as well as improvements to existing business models. For example, Prism`s VTU (Voucherless Top Up) technology enables entrepreneurs with a way of managing a virtual network of sub-distributors who in turn supply airtime to prepaid cellular subscribers securely, conveniently and at the lowest possible recharge value, right to the consumer`s cellular handset.
VTU facilitates the sale of airtime without the use of physical recharge cards or PIN numbers, and customers can benefit from being able to obtain airtime anytime, anywhere and from any vendor, securely and with an instantaneous SMS confirmation of their purchase. What makes VTU so attractive is that distributors and sub-distributors do not require anything more than a cellphone and a SIM card to run their own airtime distribution business.
Underpinning these innovative solutions is the inventive use of industrial strength security ensuring that every aspect of the transaction, from identification and authentication, data integrity and confidentiality, to full accountability and audit-ability is protected by end-to-end transaction security for which Prism has become so well-known.
Handset evolution has given rise to additional possibilities, more so than existed previously when all applications had to reside on the SIM card. Examples include contactless or proximity payment applications and the advent of viable software environments such as Java, which enable feature-rich handset applications to be developed. Paired with the bandwidth advances in data such as GRPS and 3G we are now seeing the use of Java applications, securely enabling banking and transacting services.
Prism has been a pioneer in providing solutions and payment security infrastructure to service providers and banks that have launched mobile payment offerings.
"Every few years, confluence resulting from a new technology such as J2ME or near field communication, consumer acceptance such as the adoption of Java applications, and business willing such as the adoption of mobile phone by banks as legitimate channels for transacting, gives rise to fundamental shifts in our transacting behaviour and habits. This is what I believe we are seeing in South Africa and around the world today," concludes Turpin.
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Net1 UEPS Technologies Inc acquired Prism Holdings Limited on 4 July 2006.
Net1 is a US-domiciled company, with its operations and management headquartered in South Africa and a market capitalisation of $1.4 billion. Net1 is an established NASDAQ-listed company, a market that provides a deep appreciation for intellectual capital and allows for the development and commercialisation of technology on an international basis.
Net1 provides chip card technologies and systems such as its Universal Electronic Payment System (UEPS) to establish a secure and affordable transacting channel between formal businesses and the un-banked and under-banked populations of developing economies.
Prism has historically focused on the provision of end-to-end EMV solutions, m-commerce technologies, GSM SIM mask technologies, and encryption products typically applied to high-end transaction processing for national retailers, banks and international network operators.
The combination of Prism and Net1 technology and service offerings creates an entity providing electronic payment solutions across all sectors of the economy including leveraging Net1`s pension payment infrastructure into the formal retail sector in South Africa, Africa and other global markets.
It is the convergence of core technologies and people coupled with Prism`s global reach, experience and knowledge of working within the Asian market as well as clear synergies between the two companies that has the potential to enhance the company`s geographical penetration, amplify the company`s technological advantage and increase the total number of transactions being processed.
The two companies will be fully integrated within the following six to 12 months.
Net1 (www.net1ueps.com)
Net1 provides its Universal Electronic Payment System (UEPS) as an alternative payment system for the unbanked and under-banked populations of developing economies. Net1 believes that it is the first company worldwide to implement a system that can enable the estimated four billion people who generally have limited or no access to bank accounts to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers.
UEPS accomplishes this by utilizing secure smart cards that operate in real-time but offline, this is unlike traditional payment systems offered by major banking institutions that require immediate access through a communications network to a centralised computer. This offline capability means that users of Net1`s system can enter into transactions at any time with other cardholders in even the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, Net1`s system can be used for banking, health care management, international money transfers, voting and identification.
Prism Holdings (www.prism.co.za)
Prism Holdings Limited is a trusted transactions company with expertise in the area of secure electronic transaction technologies and services. The company has a strong presence in South Africa, an established and expanding footprint across Africa and South-East Asia and local representation in the United Kingdom and Germany. Prism`s head office is located in Johannesburg, South Africa; there are regional South African offices in Durban, Cape Town and Springs, as well as an Asia-based office situated in Kuala Lumpur, Malaysia.
Prism has a proven track record in the delivery of own IP technologies, solutions and services. Its core competencies around secure online transaction processing, cryptography and integrated chip card technologies are principally applied to electronic commerce transactions in the telecommunications, banking, retail, petroleum and utilities market sectors.
Prism has developed and implemented innovative payment-centric products that bridge the following technologies:
* Chip and wireless products including telecoms and financial software, 2G and 3G GSM SIM cards and secure access modules.
* Incognito transaction security nodules, security products ensuring transaction authentication, confidentiality and integrity; third party products.
* OEM transaction modules including secure payment modules, encrypting PIN pads and outdoor payment terminals.
* Payment Solutions incorporating secure integrated POS payment systems, VeriFone products, EMV solutions/upgrades, payment software and the FlexiLANE/POS/GATE multi-lane chip payment system.
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EasyPay Services which controls the largest bank-independent financial switch in
southern Africa.
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