THE UGLY

Finweek English Edition - - THE WEEK -

Net1’s sub­sidiary Cash Pay­mas­ter Ser­vices (CPS) han­dles so­cial grant pay­outs, while Net1 it­self also pro­vides ad­di­tional ser­vices to grant ben­e­fi­cia­ries – in­clud­ing of­fer­ing mi­cro-loans rang­ing from R410 to R1 050. Speak­ing to SAfm,

said that Net1 ad­ver­tised these loans (which typ­i­cally have a du­ra­tion of six months) as “in­ter­est-free”, but still charges ser­vice fees. It charged R100 on a R410 loan for three months, or as Wierzy­cka points out, at an ef­fec­tive an­nual in­ter­est rate of 280%.

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