ELECTRONIC FUND TRANSFERThis is a featured page


Beer, Shotguns, and Digital Cash

http://1raindrop.typepad.com/1_raindrop/2007/08/beer-shotguns-a.html I am always interested in areas where constraints lead to innovative designs, for example Out of Africa, With Smart Cards which is a good example of Thomas Barnett's Core/Gap way of looking at the world:

BEER DELIVERY IN POOR countries is a two-man job. One guy drives the truck and unloads the cases. The other one holds the shotgun. It's not that criminals are particularly interested in the beer; it's heavy and cheap. Rather, they're looking for the money stuffed in the pockets of the delivery man. A general shortage of banks, communication lines and reliable accounting standards in poor countries means everyday items like wages, utility bills and store deliveries require the exchange of cash.

An awkwardly named Johannesburg company has a fix for that. Net 1 UEPS Technologies (UEPS: 23.71, -0.05, -0.2%) — the acronym stands for universal electronic payment system — has developed a technology that transfers funds between smart cards without the use of communication lines or central computers. It's hoping to attract more than just beer distributors as customers. From the company's annual financial report: "We believe that we are the first company worldwide to implement a system that can enable the estimated four billion people who generally have limited or no access to a bank account to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers."

Each transaction requires two smart cards (each with embedded computer chips) and a point-of-sale device. One card belongs to the merchant and the other to the customer. The terminal is battery-powered, so it can be used anywhere. Transactions require fingerprint verification and Net 1 guarantees cardholders against liability for fraudulent purchases. Merchants periodically present their cards at wired Net 1 terminals, where information is downloaded to the company's computers. Lost cards are easy to replace, since account information is stored each time a transaction is made. Cards can be adapted to serve a variety of purposes, from voting to disbursing small loans to tracking AIDS treatments.

Today the company's cards are used by 3.6 million South Africans to receive monthly welfare and pension payments and to make purchases at participating merchants. Over the next year it plans to introduce the service in Namibia, Botswana and Nigeria. Management says the cards benefit everyone involved. Individuals collect interest on their savings without having to meet bank deposit minimums. Merchants get new sources of income. Employers and government agencies get a convenient way to disburse funds. Everyone reduces their risk of theft. Welfare recipients pay no fees. Wage recipients pay modest ones. The company makes most of its money from fees paid by South Africa's provincial governments. It also profits from hardware sales, merchant fees and card-based sales of financial products like insurance. Last year sales increased 13%. This year they're expected to climb 12% and next year, once the company has moved into its new markets, sales are seen increasing 17%.
...
The smart card is mightier than the sword. Is there a lesson for Internet security here? Porting valuables across hostile terrain using a layer of abstraction and stronger identity and authentication protocols... ========================================================]
Net 1 UEPS Technologies
http://www.net1.com/home.aspx?ID=1

OurTechnology

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What is U.E.P.S.?


Background Information on the Technology
The first payment system developed using the FTS Patents is the proprietary system called the U.E.P.S.(Universal Electronic Payment System). The first commercial electronic purse ever launched. U.E.P.S. is a fully integrated method of transacting electronically, with all the benefits of using cash but with none of the attendant risks. It can replace all the current financial delivery systems such as bank notes and coins, credit and debit cards, checks and passbooks.
 Utilizing this patented technology, Net1 has developed and implemented a variety of unique systems that open the door for un-banked, under-banked and banked markets in emerging economies worldwide. The U.E.P.S. system has been designed to eliminate previous deficiencies encountered in electronic fund payment systems and to improve the lifestyles of its users. The system is user-friendly and compatible with all international banking systems.
 Whilst fundamental in terms of its social and environmental impact on the population of many of the world’s undeveloped economies, the U.E.P.S. technology makes just as powerful an impression on the business models and profitability of first world financial and commercial enterprises.

Benefits


Imagine a secure national payment system:
  • With universal reach, U.E.P.S. representing a utility unhindered by formal telecommunications infrastructures.
  • That manages the flow of funds between consumers, merchants and financial service providers.
  • That operates with the best cutting edge international technology, protected by global patents.
Imagine convenient, secure cashless transactions:
  • Requiring no online communication infrastructure or authorization procedures.
  • Protected to eliminate unauthorized abuse.
  • Incorporating a clear audit trail for tracking, reconciliation and loss tolerance.
  • Purchasing with the trading power of millions of consumers.
Imagine the impact of endlessly versatile information management systems:
  • Providing a powerful, seamless collection of critical trading data.
  • Protected and managed by secure technology and easily interfaced with resident systems.
  • With a user base of millions possessing massive and active spending power.

Security

The e-commerce explosion continues to be thwarted by security issues, the lack of verification and consumer reluctance to disclose sensitive credit or debit account information over the Internet. Net1’s U.E.P.S. technology nullifies these concerns through the patented end-to-end security protocol that ensures that any active communication can only be interpreted by the cardholder and the merchant cards. The security algorithms and audit trail further counter the risk of fraud, repudiation or non-payment through the system.
 The FTS Patent has been acclaimed by leading cryptographic authorities around the world as the most innovative and secure protocol ever invented to manage offline and online smart card related transactions. Please see the independent report by Bruce Schneider in his book entitled Applied Cryptography, 2nd Edition published in the late 1990s.
 The security of the system does not rely on the terminal hardware or the communications network that is used to transfer the resulting information. The protocols include cryptographic algorithms from the Data Encryption Standard (DES) to the more modern Elliptic Curve system. This methodology distinguishes the U.E.P.S. technology from all its competitors.

Key Features of the U.E.P.S. Payment System:


The U.E.P.S. technology includes functionality that allows the following:
  • Transparent and Automatic Recovery
  • Transaction Cancellation
  • Refunds
  • Multiple Audit Trails
  • Offline Loading
  • Biometric Identification
  • Continuous Debit
  • Multiple Wallets
  • Morphing
  • Automatic Credit
  • Automatic Debit
  • Interest Calculations
  • Milking / Batching

The U.E.P.S. Versus its Competitors:

The U.E.P.S. distinguishes itself from its competitors, with reference to cash, checks, credit and debit cards, as well as from other smart card based payment systems, in the following ways:
  • Little or no technology, and specifically no security, is required in the terminal itself thus reducing costs and allowing the effective proliferation of merchant points.
  • The terminal network can operate with or without the use of any communications infrastructure.
  • The security encryption protocols enable cardholders to receive fund loading instructions from a third party through any insecure communication channel, such as word-of-mouth, telephonically, in newspaper, or any analogue or digital network.
“Net1’s commitment to ongoing technological innovation and product development will ensure that it remains a world leader in smart card related technologies.”

The U.E.P.S. Technology Deployment

Net1's U.E.P.S.technology is widely used in Africa, the CIS Republics, Russia and the Middle East and ismaking inroads into Vietnam, Indonesia, Colombia and other developing markets, where new projects have been rolled out. In South Africa today, over 3.8 million clients in five provinces receive social welfare grants on Net1 smart cards. Increasingly, these customers are using their smart cards at participating merchants to receive and spend their grants.

In Ghana, Net1 has implemented a National smart card settlement and switching system, which is now the de-facto payment standard and provides inter-operability with, and to, all the other payment systems, such as VISA and Mastercard.
 In Iraq, Net1 has commenced the implementation of a National Payment System which already includes the two largest banks in Iraq, as well as a number of Government agencies.
 In Russia, Net1's U.E.P.S., locally named DUET, has deployed in excess of 7 million cards to SBERbank's clients and the system is also present in numerous CIS republics. Net1 technology incorporates software, smart cards, payment terminals, back-end infrastructure and transaction security, these technologies are coupled with years of experience in developing, integrating and upgrading transaction systems.
 Within industry, Net1 technologies are applied to electronic commerce transactions to provide solutions in the fields of social security, wage distribution, banking, medical and patient management, international money transfers, voting and identification systems. Market sectors include Government and NGOs,Healthcare, Telecoms, Financial Institutions, Retailers, Petroleum and Utilities.

More About Our Technology

Salary & Wage Distribution Payments

The Salary & Wage Distribution Payments product eliminates the need for cash through the introduction of electronic funds guaranteed by a financial institution.
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U.E.P.S. Banking

The U.E.P.S. system enables traditional financial institutions to surpass the offerings of competitors through the technological innovations available in the U.E.P.S. solution.
Read more...

The Net1 U.E.P.S. (Universal Electronic Payment System) has secured a foothold in a number of African countries by supplying turnkey banking solutions that are ideally suited for developed and developing economies. The U.E.P.S. system enables traditional financial institutions to surpass the offerings of competitors through the technological innovations available in the U.E.P.S. solution. Option 1 The U.E.P.S. system can operate as a Stand-A-Lone system whereby financial institutions can issue smart cards to their clients as the physical Bank Account.JEM NOTE: This feature allows Eco-Campus to have our credit union issue “local currency” in the form of a financial transaction card. The remaining issue is the cost of the card reader, installation and training in a wired and wireless system. The cost savings will be substantial since we do not have to print physical currency and the merchants do not need an additional cash drawer to handle the alternative currency. Bank customers can easily redeem local currency in the national currency form. Option 2 This facility is offered whereby cardholders who already have an existing traditional bank account are able to transfer funds to their smart card from their bank account and vice-versa.

Benefits to Cardholder

  • Offline spending
  • No charges on spending
  • Reduced fraud and theft
  • Transact at any participating merchant

Benefits to Merchant / Teller

  • Increased client base
  • Low transaction / administrative costs
  • Limited telecommunications infrastructure required
  • Reduced fraud and theft
  • System security – multiple audit trail
Third Party Host DeductionsNet1 has designed and developed a system that manages 3rd party host deductions against value due for loading onto the U.E.P.S. cards.
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Money Transfers

The Universal Electronic Payment System (U.E.P.S.) offers a variety of options for the secure transfer of local funds from a Sender to a Recipient utilizing smart card technology.
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Money Transfers

The Universal Electronic Payment System (U.E.P.S.) offers a variety of options for the secure transfer of local funds from a Sender to a Recipient utilizing smart card technology. Funds are remitted electronically and securely using biometric fingerprint identification to load funds onto smart cards and spending from smart cards requires biometric fingerprint identification. Cash collections are in the form of Cash Transfer Collections which enables an unbanked person to receive cash from the Sender using the U.E.P.S. Non-Cardholder Cash Transfer Collection facility at U.E.P.S. POS devices or ATMs.
 A key feature of the U.E.P.S. is its Offline transaction processing ability. Funds can be loaded to a Recipient smart card either online or offline at a U.E.P.S. POS device, ATM or on a U.E.P.S. active Mobile Phone.

The U.E.P.S. offers the following Money Transfer options:

  • WALLET2WALLET
  • CARD2CARD
  • CARD2PHONE
  • CARD2PERSON
  • CARD2OTHER
  • CARD2BANK
  • BANK2CARD
  • PHONE2PHONE
  • PHONE2CARD
  • PHONE2PERSON
  • PHONE2OTHER
  • PHONE2BANK
  • BANK2PHONE

Third Party Bill Payments

In order to offer convenience to our cardholders, the U.E.P.S. enhances this product to accommodate “Linked” and “Once-Off” 3rd party account payments.
Read more...

Third Party Bill Payments

Bill payment services offered by traditional Financial Institutions allow for 3rd party payments to be made to “Registered” merchant accounts. This implies that merchants have to be signed up to perform this function.In order to offer convenience to our cardholders, the U.E.P.S. enhances this product to accommodate “Linked” and “Once-Off” 3rd party account payments. This product allows transfers TO specified linked or once-off accounts.

Registered Merchants

Merchants who wish to make use of this payment facility can participate by simply completing a 3rd Party Merchant Application form for registration on to the System Host. Any U.E.P.S. cardholder wishing to make a 3rd party bill payment to merchants can select the option to pay a Registered Merchant on a U.E.P.S. POS/ATM. The cardholder will select the merchant applicable and after successful biometric identification, the cardholder’s smart card will be debited. At system settlement, the transactions on the merchant/ATM card are processed accordingly.

Linked Accounts

When a client goes to their bank of choice to open up a U.E.P.S. smart card account, they can bring with them any personal 3rd Party Bill Accounts such as clothing, Hire Purchase, school fees, medical bills, etc. for “Linking” to their smart card. These “Linked” accounts can include family and/or friends bank accounts. An “Update” function is provided in the software application to enable clients to add new or modify existing “Linked” accounts. The bank and client account details of the 3rd Party Recipient are stored on the smart card and need not be input by the client when performing a payment at a U.E.P.S. POS/ATM. At system settlement, the transactions on the merchant/ATM card are processed accordingly.

Once-Off Accounts

The "Once-Off" account payment facility enables cardholders to make one-off electronic payments to the bank account of an unregistered or unlinked 3rd party beneficiary account. The cardholder selects the menu option Once-Off Payments on a U.E.P.S. POS/ATM and enters the recipient’s account details as well as the cardholder’s account number held with the beneficiary. At system settlement, the transactions on the merchant/ATM card are processed accordingly. http://www.net1.com/main.aspx?ID=167
Cash Advances A Cash Advance is a facility made available to qualifying cardholders at any U.E.P.S. ATM and POS device at participating bank branches, merchant stores and micro-financier offices in urban, semi rural and rural areas.
Read more...

Social Grant Benefit Payments

The Net1 Social Grant Benefit Payments product was designed to enhance the participation of social grant beneficiaries in the economy of their countries.
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Pension Collection& Distribution

Net1 has designed a unique system of collecting pension contributions to alleviate non-payment of pension contributions from employers to pension schemes.
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Retail

The Net1 Retail application manages the flow of electronic funds between consumers, retailers, wholesalers and financial service providers.
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Retail

The Net1 Retail application manages the flow of electronic funds between consumers, retailers, wholesalers and financial service providers. The solution offers merchants a cashless payment system, designed to meet their specific needs and the needs of their customers by offering security, affordability and accessibility. Many of these merchants operate in under-developed areas where traditional financial institutions and their products are unavailable or limited due to the lack of communications infrastructures.

Benefits to the Merchant

  • Increased turnover from a growing smart card client base
  • Reduced cash holdings
  • Reduced banking charges
  • Reduced communication costs
  • Reduced reconciliation problems
  • Reduced fraud and theft
  • New income streams

Benefits to the Cardholder

  • Security - biometric fingerprint identification
  • If the card is lost, the funds are not lost
  • Reduced bank charges
  • Access to selected U.E.P.S. products and services
  • Separate spouse wallet on the same smart card
  • Ability to save and earn interest
http://www.net1.com/main.aspx?ID=171

Wholesale Distribution

The Net1 wholesale distribution system offers wholesalers the facility to eliminate the need of accepting payment in cash from distributors.
Read more...

Transportation

The Transportation application was designed and developed by Net1 to offer a secure and effective electronic payment system for fare collections from commuters to the Transportation Service Providers.
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Pre-paid Utilities

The Net1 Pre-paid Utilities allows for the transfer of prepaid units and information between facilities’ providers and their metering devices such as water and electricity meters.
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Virtual Top Up

Net1’s Voucherless airtime top-up solution is the most effective channel through which to maximize sales growth as well as distribution efficiency.
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Virtual Top Up (VTU)

For GSM Network Operators looking to harness changing trends in the lucrative prepaid subscriber market, Net1’s Voucherless airtime top-up solution is the most effective channel through which to maximize sales growth as well as distribution efficiency. Prepaid users want to recharge their airtime simply and securely. The continuous demand for convenience is driving prepaid subscribers to look to their cellular carriers to provide “top-up distribution” points that are both readily available and easily accessible. The Net1 Voucherless Top-Up (VTU) solution enables the Network Operator to establish relationships with a number of virtual vendors/merchants who can then further distribute and vend airtime, all via their cellular handsets, on the operator’s behalf.[JEM NOTE: This system will allow us to create a WiMAX system for use by mobile VoIP phones which are Internet ready. We can sell minutes x distance and drive revenue to support the entire communication system by using pre-paid deposits made via the GSM network. Over time, we can install Hughesnet satellite systems to get coverage over long distances, and Point to Point microwave for short distances. By connecting to the Internet with Skype, we have a virtual global telephone system by which we can communication via Internet and the common carrier wired an fiber optic cable system. There may be regulatory systems issues.]

Benefits to the Vendor

  • No overheads due to no physical outlet
  • Reduced costs – no physical voucher

Benefits to the Consumer

  • No set voucher denominations
    • Easier accessibility to airtime
http://www.net1.com/main.aspx?ID=175

Loan Registration to Card

This application allows for financial institutions to register loans on to the U.E.P.S. card to enable the system to apply an automatic debit against any incoming funds to the card in respect of the premium amount.
Read more...

Insurance

The Net1 U.E.P.S. Insurance System was designed to enable formal businesses to market and sell their products to the public at large.
Read more...

National ID

The National Identification Application provides Government with a smart card system which facilitates all the citizens/residents of the country having their national identification and fingerprints stored onto a smart card.
Read more...

Voting

Our Voting product provides Government with an Offline Electronic Voting Application to facilitate Presidential, Parliamentary and Council elections.
Read more...

Driver's License

The Driver's License application provides Government with a smart card system which facilitates all the citizens/residents of the country having their Driver's License statistics captured on to a smart card with biometric fingerprint identification.
Read more...

National Health Insurance

Net1 has designed a unique system for the premium collection, revenue management, membership identification, admittance and claim certification for the health industry.
Read more...

Medical & Patient Management

Net1 designed this product for the effective monitoring of funds from various funding organizations worldwide ensuring that the funds are utilized for the purpose for which they were intended.
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Loan Deposits to Cards

The Loan Deposit to Card was designed for Financiers to be able to participate in the U.E.P.S. System and utilize the U.E.P.S. (Universal Electronic Payment System) technology to minimize the cash amount being paid out to their clients in respect of Loans.
Read more...

Mobile Payments & Banking

Net1 has designed and developed a Mobile Payments and Banking Services product for payment of goods and services using your mobile phone.
Read more...

Mobile Payments & Banking

Net1 has designed and developed a Mobile Payments and Banking Services product for payment of goods and services using your mobile phone. This system allows a mobile user (client) to transact anywhere; to do various banking transactions such as retail sales payments, cash deposits, cash withdrawals, money transfers and many more.
 Mobile Operators who desire to participate in the system will be required to purchase SIM cards, which incorporate the Virtual Card U.E.P.S. Application. All mobile phone customers who wish to use this facility will be issued with a new U.E.P.S. - SIM CARD (through the mobile operator). Each SIM card will be pre-loaded with the U.E.P.S. mobile application and a Unique Serial Number (USN). The U.E.P.S. application present in the SIM will initially be configured with a SCA wallet (Current Account) and a Savings wallet.

The following functionality is available using the mobile payments or banking option on U.E.P.S.

  • SCA Wallet – current Account
  • Savings Wallet – including interest
  • Change PIN
  • Sales Transactions
  • Money Transfers
  • Balance Enquiries - Offline
  • Transaction List
  • 10 Digit Electronic Signature Loads
  • 3rd Party Bill Payments to:
    • Registered Merchants
    • Linked Merchants
    • Once Off Merchants
  • Automatic Cash Advances
  • U.E.P.S. Authenticated Cash Deposits




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jimmiller5418 		Latest page update: made by jimmiller5418 , Sep 13 2009, 6:28 PM EDT (about this update About This Update jimmiller5418 Edited by jimmiller5418


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