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South African fintech

Lesaka Technologies
FormerlyNet 1 UEPS Technologies
TypePublic
JSE: LSK
Nasdaq: LSAK
ISINUS64107N2062
IndustryFintech
Founded2017; 9 years ago (2017)
FounderSerge Belamant
HeadquartersJohannesburg, Gauteng, South Africa
Area served
Southern Africa
United Kingdom
Key people
Ali Mazanderani (Chairman)[1]
RevenueIncrease $659 million (2025)[2]
Decrease -$27 million (2025)
Decrease -$87 million (2025)
Total assetsIncrease $653 million (2025)
Total equityDecrease $165 million (2025)
Websitelesakatech.com

Lesaka Technologies (formerly Net 1 UEPS Technologies) is a South African financial technology company that is listed on the NASDAQ (Nasdaq: LSAK) and Johannesburg Stock Exchange (JSE: LSK).[3][4]

Founded in 2017 and headquartered in Johannesburg, Gauteng,[5] Lesaka’s primary focus is on financial inclusion, offering financial services to previously underserved communities and merchants.[6]

History

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The company was founded as Net 1 UEPS Technologies in 1997, by Serge Belamant, who also developed its basic technology. He left the company in 2017 under a "separation agreement" filed with the Securities and Exchange Commission for $8 million.[7]

Herman Kotze, the company's chief financial officer, became its CEO after Belamant's departure.[8] The company became known for products such as EasyPay and Cash Paymaster Services (CPS).[9]

In 2020, Value Capital Partners invested R580 million into the company and began a process of redefining the strategy, appointing a new board and management team, and strengthening the company’s corporate governance.[10][11]

In 2021, the company appointed Chris Meyers as its new CEO.[12]

In 2022, Net1 rebranded as Lesaka Technologies, which coincided with the R3.7 billion acquisition of the Connect Group.[13]

Meyer stepped down as Lesaka’s CEO in 2023.[14] Upon his departure from the company, Ali Mazanderani was appointed as executive chairman and former chairman Kuben Pillay became lead independent director.[14]

Acquisitions

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In 2010, the company announced that it would acquire KSNet, a Korean payment processor, for $233 million.[15] Net1 expanded into the United Kingdom with the acquisition of Zazoo in 2015.[16] It reached an agreement with MobiKwik, a mobile phone based payment system and digital wallet based in India, in 2016.[17]

Net1 sold KSNet to Stonebridge Capital and Payletter for $237 million in March 2020.[18] In September 2020, Cash Paymaster Services (CPS), a subsidiary of Net1, went into liquidation. It had been in a previous legal dispute over deductions from grant payments for micro loans‚ airtime and other financial services.[19][20]

In March 2022 Net1's R3.7 billion 100% acquisition of the Connect Group was approved by the South African Competition authorities.[21] The transaction was first announced in November last year, when Net1 signed a definitive agreement to acquire 100% of the Connect Group.[22]

In February 2024 Lesaka announced it was acquiring Touchsides, a platform-as-a-service and software-as-a-service solutions provider to licensed tavern outlets.[23]

In May 2024, Lesaka Technologies acquired Adumo, a payment platform headquartered in Cape Town, for $85 million.[24]

In June 2025, Lesaka Technologies signed a deal to acquire Bank Zero, a South African digital mutual bank, for R1.091 billion, pending regulatory approvals.[25] The deal received approval from the South African Competition Commission in late 2025. In June 2026 it was reported that the acquisition's deadline had been extended to 31 January 2027, due to pending regulatory approvals.[26]

Controversies

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SASSA grant beneficiaries scandal

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Subsidiary Cash Paymaster Services (CPS) was the primary contractor responsible for paying millions of South African Social Security Agency (SASSA) grant beneficiaries from 2012 to 2018. The R10 billion, five-year contract was controversial due to irregularities in the procurement process and concerns over the exploitation of grant beneficiaries. The contract was ruled invalid in AllPay v CEO of SASSA in the Constitutional Court.[27][28]

Cash Paymaster Services was ordered to pay SASSA implementation costs; it was subsequently liquidated in 2020, and Net1 rebranded as Lesaka Technologies. SASSA said it intends to recover the R1.5 billion it is owed.[29][30]

In its Form-10K to the SEC in 2022, Lesaka said it continues to cater to grant recipients through its EasyPay Everywhere platform, with the majority of its active 1.9 million customers being grant recipients.[31]

References

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  1. ↑ "Fintech investor Ali Mazanderani is Lesaka Technologies new chairperson". cio-sa.co.za. 5 December 2023. Retrieved 30 March 2024.
  2. ↑ "Lesaka Technologies - Annual Report, 2025" (PDF). Lesaka Technologies. 2025. Retrieved 24 June 2026.
  3. ↑ "Lesaka Technologies Inc (LSAK) Surpasses Q2 FY24 Guidance with S". www.gurufocus.com. Retrieved 30 March 2024.
  4. ↑ "Lesaka Technologies Inc (LSK) Stock Price & News". Google Finance. Retrieved 30 March 2024.
  5. ↑ "Net1 must comply with 'spirit' of top court's order, Allan Gray urges". Business Day. 17 March 2017.
  6. ↑ "Lesaka Technologies – Championing financial inclusion in informal communities". businesstech.co.za. 7 June 2023.
  7. ↑ "Net1 to pay outgoing CEO Serge Belamant a cool R263-million". Mail & Guardian. 30 May 2017.
  8. ↑ "Altron CFO Alex Smith quits to join Net1". Tech Central. 1 December 2017.
  9. ↑ "EasyPay owner Net1 rebrands as Lesaka Technologies". news24.com. Retrieved 30 March 2024.
  10. ↑ "Value Capital Partners acquires stake in under-fire Net1". ITWeb. 28 April 2020. Retrieved 30 March 2024.
  11. ↑ "Value Capital Partners takes R580m stake in Net1". Moneyweb. 28 April 2020. Retrieved 30 March 2024.
  12. ↑ Zourmpanos, Yiannis (2 August 2023). "Lesaka Technologies: A Fintech Turnaround Case". Seeking Alpha. Retrieved 30 March 2024.
  13. ↑ "Net 1 UEPS rebrands as Lesaka". iol.co.za. 12 May 2022. Retrieved 30 March 2024.
  14. 1 2 "Lesaka CEO Chris Meyer to step down". TechCentral. 5 December 2023. Retrieved 30 March 2024.
  15. ↑ "Net1 to buy 99% of Korean payment processor KSNet". Finextra. 16 September 2010.
  16. ↑ "Net1 Launches ZAZOO in the UK" (Press release). Globe Newswire. 5 February 2015.
  17. ↑ "Net 1 and MobiKwik enter into subscription agreement in India". Telecomlead. 26 August 2016.
  18. ↑ "Net 1 UEPS Tech To Sell KSNET For About $237 Mln". Nasdaq. 27 January 2020.
  19. ↑ "New Net1 boss defends Belamant's $8- million golden handshake". Sunday Times. 2 June 2017.
  20. ↑ "Cash Paymaster Services to go into liquidation". Moneyweb. 30 September 2020.
  21. ↑ "Net1 gets green light for R3.7-billion Connect deal". TechCentral. 11 March 2022.
  22. ↑ "Net1 gets green light for R3.7-billion Connect deal". TechCentral. 11 March 2022. Retrieved 30 March 2024.
  23. ↑ "Lesaka buys Touchsides from Heineken in taverns push". TechCentral. 6 February 2024. Retrieved 29 April 2024.
  24. ↑ "Lesaka Technologies to Integrate Adumo in $85 Million Deal". Fintech Industry Examiner. 8 May 2024.
  25. ↑ Gavaza, Mudiwa. "Lesaka's shares jump on deal to acquire Bank Zero for R1.1bn".
  26. ↑ Luke Fraser (18 June 2026). "Sale of South African bank for R1.1 billion delayed". BusinessTech. Retrieved 24 June 2026.
  27. ↑ Malherbe, Kitty (1 December 2017). "Social Grant Payments – a Crisis Averted?". Revue de droit comparé du travail et de la sécurité sociale (4): 224–227. doi:10.4000/rdctss.2479. ISSN 2117-4350.
  28. ↑ Mosiana, Mamello (24 May 2023). "Net1 and CPS - Welfare Profiteers". Open Secrets. Retrieved 6 July 2025.
  29. ↑ Postman, By Zoë (20 October 2020). "SASSA determined to get back "every cent" owed by Cash Paymaster Services". GroundUp News. Retrieved 6 July 2025.
  30. ↑ Broughton, Tania (14 February 2022). "Concourt hammers unlawful social grants company". Daily Maverick. Retrieved 6 July 2025.
  31. ↑ "Lesaka Technologies Inc. Securities and Exchange Commission (SEC) Form 10-K". www.sec.gov. Retrieved 6 July 2025.
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