Net 1 UEPS Technologies, Inc. engages in the provision of payment solutions and transaction processing services in South Africa. The firm designs, develops, and markets transaction technology, solutions, and services. It operates through the following segments: South African Transaction Processing, International Transaction Processing, and Financial Inclusion and Applied Technologies. The South African Transaction Processing segment consists of a welfare benefit distribution service provided to the South African government and transaction processing for retailers, utilities, medical-related claim service customers, and banks. The International Transaction Processing segment offers payment processing services and to a lesser extent from the sale of goods, primarily point of sale terminals, to customers in Korea. The Financial Inclusion and Applied Technologies segment comprises of short-term loans as a principal and life insurance products on an agency basis and generates initiation and services fees. The company was founded by Serge Christian Pierre Belamant in 1989 and is headquartered in Johannesburg, South Africa.
The discussion of our consolidated results of operations is based on amounts as reflected in our unaudited condensed consolidated financial statements which are prepared in accordance with U.S. GAAP. We analyze our results of operations both in U.S. dollars, as presented in the consolidated financial statements, and supplementally in ZAR, because ZAR is the functional currency of the entities which contribute the majority of our results and is the currency in which the majority of our transactions are initially incurred and measured. Due to the significant impact of currency fluctuations between the U.S. dollar and ZAR on our reported results and because we use the U.S. dollar as our reporting currency, we believe that the supplemental presentation of our results of operations in ZAR is useful to investors to understand the changes in the underlying trends of our business.