First National Bank (FNB) has sold subsidiary Cash Paymaster Services (CPS) to smart card company Net1 Applied Technology Holdings (Aplitec) in a share swap transaction worth R54 million.
In a joint announcement, FNB chief operating officer Neville Nightingale, and Aplitec CEO Serge Belamant, said the deal met the requirements of both companies - for FNB a buyer with a significant empowerment base and the right technology, and for Aplitec an excellent fit of technology, customers and infrastructure.
"We believe this is a key step in our vision of delivering affordable and lifestyle enhancing financial services to lower income people," said Belamant.
Nightingale noted that it was essential to serve this segment appropriately and that innovative technologies were needed to make that happen.
CPS distributes monthly social grant payments exceeding R7 billion a year to more than 1.2 million people in SA and Namibia through a network of 4 750 fixed and mobile cash pay points, focusing mainly on pension payments. Aplitec intends to issue pensioners with a single smart card containing biometric identification data as the means by which the pension is distributed.
CPS`s board of directors will be reconstituted and will include a representative of FNB, which will also have the right to nominate a representative to the Aplitec Board.
CPS currently holds provincial government contracts with six provinces as well as the government of Namibia. It also distributes UIF benefits and provides payroll services in some of these provinces and in the Western Cape.
The CPS disbursement system uses fingerprint recognition technology and specially adapted cash dispensers built into reinforced vehicles to cut down on pension fraud.
"The Aplitec technology," said CPS MD Sarel Etsebeth, "will allow us to reduce operating costs further, better serve our two core customers, the government and pensioners, and increase our business opportunities."
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