Net1, which is involved in a legal brawl with SASSA and AllPay regarding a R10 billion government tender, is indirectly expanding into the lucrative Chinese market through the acquisition of 44% minority stake in Transact24 (T24), a specialist Hong Kong-based payment services company. By Gugu Lourie
The company didn’t disclose the value of the transaction.
However, the company that owns Zazoo that is in a process of internationalising its mobile virtual card didn’t disclose the value of the transaction.
T24 is a Hong Kong-based Payment Services Company, established in 2006, with offices and satellite entities in Australia, Singapore, China, Mauritius, South Africa, Austria, Gibraltar, the USA and the UK.
T24’s payment services products include Chinese Debit Card and Credit Card Acquiring; ACH processing; and Prepaid Card Issuance and Prepaid Card Program Management. T24 owns the IP for all its processing systems and all its systems are PCI DSS Level 1 compliant.
“T24’s businesses are all complementary to Net1’s existing products and will further expand our product suite and geographic reach accordingly,” said Serge Belamant, chairman and CEO of Net1.
“The T24 management team has a wealth of experience in transaction processing, and will provide us with specialist marketing business development resources to expand the adoption of the Net1 product range including our Mobile Virtual Card product. T24 also provides Net1 with an entry into the rapidly growing Chinese e-commerce and transaction processing markets through its established relationships with China UnionPay and AliPay,” he said.
Belamant added: “We are delighted to have Net1 as a significant shareholder in the T24 group,” said Philip Meyer, CEO and co-founder of T24. “We are excited about the prospects of expanding our product range and markets, and to assist Zazoo with the roll-out of its revolutionary VCPay product.”
Net1 is a 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.