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Revenue
 12 Months Ended
Jun. 30, 2021
Revenue [Abstract]  
Revenue
15.
 
REVENUE
 
 
The
 
Company
 
is a
 
provider
 
of transaction
 
processing
 
services, financial
 
inclusion
 
products and
 
services
 
and
 
secure payment
technology. The Company operates market-leading payment
 
processors in South Africa. The Company
 
offers debit, credit and prepaid
processing and issuing services for all major payment networks. In South Africa, the Company provides innovative low-cost financial
inclusion products, including banking, lending and insurance.
 
Disaggregation of revenue
 
The
 
following
 
table
 
represents
 
our
 
revenue
 
disaggregated
 
by
 
major
 
revenue
 
streams,
 
including
 
reconciliation
 
to
 
operating
segments for the year ended June 30, 2021:
Processing
Financial
services
Technology
Total
Processing fees
$
60,982
$
2,338
$
-
$
63,320
South Africa
57,664
2,338
-
60,002
Rest of world
3,318
-
-
3,318
Technology
 
products
2,054
330
16,630
19,014
Telecom products
 
and services
 
13,422
-
-
13,422
Lending revenue
-
20,672
-
20,672
Insurance revenue
-
6,605
-
6,605
Account holder fees
-
5,342
-
5,342
Other
1,204
318
889
2,411
Total revenue, derived
 
from the following geographic
locations
77,662
35,605
17,519
130,786
South Africa
74,344
35,605
17,519
127,468
Rest of world
$
3,318
$
-
$
-
$
3,318
15.
 
REVENUE
 
(continued)
 
 
The
 
following
 
table
 
represents
 
our
 
revenue
 
disaggregated
 
by
 
major
 
revenue
 
streams,
 
including
 
reconciliation
 
to
 
operating
segments for the year ended June 30, 2020:
Processing
Financial
services
Technology
Total
(as restated)
(as restated)
(1)
Processing fees
$
55,992
$
4,903
$
-
$
60,895
South Africa
(1)
50,951
4,903
-
55,854
Rest of world
5,041
-
-
5,041
Technology
 
products
981
-
17,280
18,261
Telecom products
 
and services
 
22,631
-
-
22,631
Lending revenue
-
19,955
-
19,955
Insurance revenue
-
5,212
-
5,212
Account holder fees
-
12,628
-
12,628
Other
4,024
626
67
4,717
Total revenue, derived
 
from the following geographic
locations
83,628
43,324
17,347
144,299
South Africa
78,587
43,324
17,347
139,258
Rest of world
$
5,041
$
-
$
-
$
5,041
(1) Processing fees South Africa and Total
 
columns have been restated for the error described in Note 1.
 
The
 
following
 
table
 
represents
 
our
 
revenue
 
disaggregated
 
by
 
major
 
revenue
 
streams,
 
including
 
reconciliation
 
to
 
operating
segments for the year ended June 30, 2019:
Processing
Financial
services
Technology
Corporate/
Total
(as restated)
Eliminations
(as
restated)
(1)
Processing fees
$
82,995
$
95
$
-
$
-
$
83,090
South Africa
(1)
73,153
95
-
-
73,248
Rest of world
9,842
-
-
-
9,842
Technology
 
products
1,928
-
18,666
-
20,594
Telecom products
 
and services
 
15,025
-
-
-
15,025
Welfare benefit
 
distribution
3,086
-
-
-
3,086
Lending revenue
-
27,512
-
-
27,512
Insurance revenue
-
5,858
-
-
5,858
Account holder fees
-
17,428
-
-
17,428
Other
4,388
280
3,083
-
7,751
Revenue refund related to CPS
-
-
-
(19,709)
(19,709)
Total revenue, derived
 
from the following
geographic locations
107,422
51,173
21,749
(19,709)
160,635
South Africa
97,580
51,173
21,749
(19,709)
150,793
Rest of world
$
9,842
$
-
$
-
$
-
$
9,842
(1) Processing fees South Africa and Total
 
columns have been restated for the error described in Note 1.
 
As the Company previously disclosed,
 
in June 2014, the Company received
 
approximately ZAR
317.0
 
million, including VAT,
from
 
SASSA,
 
related
 
to
 
the
 
recovery
 
of
 
additional
 
implementation
 
costs
 
its
 
subsidiary,
 
CPS,
 
incurred
 
during
 
the
 
beneficiary
 
re-
registration process in fiscal 2012 and 2013.
 
After the
 
award of
 
the tender,
 
SASSA requested
 
that CPS
 
biometrically
 
register all
 
social grant
 
beneficiaries (including
 
child
grant beneficiaries) and collect additional information
 
for each child grant recipient. CPS agreed to SASSA’s
 
request and, as a result,
it
 
performed
 
approximately
11
 
million
 
additional
 
registrations
 
beyond
 
those
 
that
 
CPS
 
tendered
 
for
 
in
 
the
 
quoted
 
service
 
fee.
Accordingly, CPS sought
 
reimbursement from SASSA of the cost of this exercise, supported
 
by a factual findings certificate from an
independent
 
auditing
 
firm.
 
SASSA
 
paid
 
CPS
 
ZAR
317.0
 
million,
 
including
 
VAT,
 
as
 
full
 
settlement
 
of
 
the
 
additional
 
costs
 
CPS
incurred.
 
 
15.
 
REVENUE
 
(continued)
 
 
In March
 
2015, Corruption
 
Watch,
 
a South
 
African non-profit
 
civil society
 
organization, commenced
 
legal proceedings
 
in the
Gauteng Division,
 
Pretoria of
 
the High
 
Court of South
 
Africa (“High
 
Court”) seeking
 
an order by
 
the High
 
Court to
 
review and
 
set
aside the decision of SASSA’s Chief Executive Officer to approve a payment
 
to CPS of ZAR
317.0
 
million and directing CPS
 
to repay
the aforesaid
 
amount, plus
 
interest. Corruption
 
Watch
 
claimed that
 
there was no
 
lawful basis to
 
make the
 
payment to
 
CPS, and that
the decision
 
was unreasonable
 
and irrational
 
and did not
 
comply with South
 
African legislation.
 
CPS was named
 
as a respondent
 
in
this legal proceeding.
 
On February
 
22, 2018,
 
the matter
 
was heard
 
by the
 
High Court.
 
On March
 
23, 2018,
 
the High Court
 
ordered that
 
the June
 
15,
2012 variation
 
agreement
 
between SASSA
 
and
 
CPS be
 
reviewed
 
and
 
set aside.
 
CPS was
 
ordered
 
to refund
 
ZAR
317.0
 
million
 
to
SASSA, plus interest from June 2014 to date of payment.
 
 
On September 30, 2019, the Supreme Court declined CPS’
 
appeal and awarded costs against CPS. CPS
 
is liable to repay SASSA
ZAR
317.0
 
million, plus interest from June 2014 to date of payment. As a result, CPS recorded the liability at June 30, 2019, of $
34.0
million (ZAR
479.4
 
million, translated at exchange rates applicable as of June 30,
 
2019, comprising a revenue refund of $
19.7
 
million
(ZAR
277.6
 
million),
 
accrued interest
 
of
 
$
11.4
 
million
 
(ZAR
161.0
 
million),
 
unclaimed
 
indirect
 
taxes
 
of
 
$
2.8
 
million
 
(ZAR
39.4
million)
 
and
 
estimated costs
 
of $
0.1
 
million
 
(ZAR
1.4
 
million)).
 
The
 
Company
 
reduced
 
revenue
 
by
 
$
19.7
 
million
 
during
 
the year
ended June
 
30, 2019,
 
because it
 
interpreted the
 
Supreme Court
 
ruling as
 
a price
 
variation and
 
not a
 
nonreciprocal transaction.
 
The
Company deconsolidated the accrual for the refund of implementation costs
 
in May 2020, following the deconsolidation of CPS
 
(refer
to Note 23).