Dual-listed Net1 UEPS Technologies saw revenue and net income drop in the three months to March, due to the dollar gaining ground against the rand and higher costs due to a social security tender. The company says its revenue gained 10%, to $90.7 million, but fundamental earnings per share declined 18%, to $0.28. For the full year, Net1 expects fundamental earnings per share of $1.40.

Net1, which operates in South Africa, Republic of Korea, Ghana and Iraq, provides a universal electronic payment system, or UEPS, as an alternative payment system for the unbanked and under-banked populations of developing economies.

The listed group won a five-year bid, worth about R10 billion, to distribute social grants across South Africa’s nine provinces. The company will provide the solution for payment of about 15 million grants to 10 million South Africans.

Net1 says its third quarter results were impacted by the dollar gaining 12% against the rand, as well as SASSA implementation costs and cash bonuses paid as a result of its tender award.