Overview

Net1’s Product Platform UEPS (Universal Electronic Payment System)  consists of a suite of software programs and selected hardware utilizing Net1‘s patented Funds Transfer System (FTS) methodology to deliver a payment, switching and settlement environment which underpins the transaction processing system. The software primarily runs on three devices: the smart card, the transaction device (POS/ ATM/self-service kiosk/mobile phone) and the back-end system host that processes all transactions and stores audit trails. By moving processing to the computer chip embedded on a smart card, Net1 has been able to provide an alternative card system for markets in developed and emerging economies that have no or limited access to traditional banking facilities.

OPERATIONAL CONCEPT
UEPS uses secure smart cards operating offline to provide a fully integrated payment, switching and settlement platform suitable for multiple applications and services. At first, during the registration process, all relevant client account information is stored on the client card. A card acceptance device (CAD) such as a POS terminal enables offline communication between a client and a terminal/merchant card in real-time. All transaction data is stored on the terminal/merchant card for delayed settlement with the System Host. The term “offline“ refers to card transactions that are effected without the need to establish an online connection to the card issuer when the transaction occurs, as the smart cards themselves perform the required authorization directly from card to card. Whilst offline, the smart card can engage in sophisticated transaction processing using state-of-the-art data encryption and PIN/biometric fingerprint authentication to ensure security. With all software and transaction records on the smart card, the CAD device itself requires far fewer components, circuitry and memory. Each transaction is recorded on both participating cards, transferred to additional smart cards in subsequent transactions and ultimately reported to the host computer, thereby creating a full, multiple audit trail that significantly reduces the potential for theft and fraud. Instead of having to build the overall system to handle peak loads, the System further reduces costs by smoothing the transaction flow over time and using batch processing at the back-end or System Host.