Net1 UEPS Technologies, Inc-a leading provider of alternative payment systems with dominance in South Africa and Republic of Korea, has decided to spread its reach to Nigeria.
The leading payment systems provider, announced the acquisition of 25% interest in One CreditLimited- a leading Nigerian consumer finance company focused on providing credit to un-banked salaried Nigerian consumers.
News reaching Pulse Tech, says that Net1 has also agreed to provide One Credit with a credit facility of up to US$10 million in the form of convertible equity-linked loan notes.
A statement from One Credit says Net1 will “assist One Credit to grow its market share through the provision of its financial technology products and services, which have been designed to address the biggest challenge facing Nigerian financial institutions– the ability to provide seamless and cashless services in an environment that poses significant logistical and infrastructural obstacles.”
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According to Dr. Serge Belamant, Chairman and CEO of Net1, 'We are very excited to enter Africa’s largest economy and most populous country with One Credit as our partner.'
Belamant also added that 'The Nigerian consumer finance market, which is one of the fastest growing industries in the world, presents a unique opportunity to showcase the adaptability, scalability and robustness of our technologies. Our mobile virtual card and variable PIN products are particularly well suited to One Credit’s requirements and we look forward to the successful deployment of our solutions by an experienced management team that has an in-depth understanding of the Nigerian market.'
In his response, Chijioke Dozie, Co-founder and CEO of One Credit said 'We are delighted to welcome Net1 as an investor and financial technology provider.'
Adding that 'The business opportunities in the Nigerian consumer finance market are immense as less than 10% of Nigerians have ever been able to apply for a loan due to the lack of financial inclusion. Net1’s expertise, technology and investment will enable us to rapidly grow our market share in this underserved and dynamic market.'
Tech experts say the business partnership between Net1 and One Credit is needed at this time in Nigeria.
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Net1’s state of the art Universal Electronic Payment System (“UEPS”) will give One Credit an edge in the Nigerian market.
