SDS has signed a reseller microcredit agreement with Rwanda's leading mobile operator. The agreement means, among other things, that SDS receives a credit fee for the service which is shared with the operator. The service is the first of its kind in Rwanda and is expected to make a positive contribution to SDS's recurring revenues from the fourth quarter of this year.
SDS is the first player to sign an agreement regarding microcredit services in the mobile telephony market in this region. The agreement has been signed with the country's leading telecom operator and is based on SDS's flagship platform ERS 360°. This service enables retailers to request a microloan for airtime stock so they can continue selling without any business interruption.
"Social distancing has increased the need for rapid digitization and our microcredit service ensures 24x7 availability of stock for resellers to sell without the need to depend on travel for stock replenishment. This partnership brings us one step ahead in increasing our base for recurring income based on financial services, which is in line with our strategy, " says Tommy Eriksson, CEO of SDS AB.
The service intelligently assesses and scores resellers based on their risk profile and sales patterns to offer customized stock loan for each individual, thereby, credit offered can vary based on advanced profiling and risk mitigation algorithms. This service allows resellers to continue selling and receive commissions even though their original stock has run out.
SDS's acts as a virtual distributor for the telecom operator and has acquired stock credit at a discounted price for talk time, which will be disbursed to resellers who are out of stock and need to refill immediately. This service is extended for a fee that SDS shares with the mobile operator. SDS bears all credit risks and associated costs for the service. This means that the operator can improve and strengthen its offer to its distributors and resellers without any additional risks or costs.
The deal includes a discount on talk time credit to SDS and revenue sharing with the mobile operator and is expected to contribute to SDS's recurring revenues from the fourth quarter of this year.
For more information contact:
Martin Schedin
Chief Financial Officer
+46 70 438 14 42
martin.schedin@seamless.se
About Seamless Distribution Systems AB (SDS)
SDS is a Swedish software company group that provides solutions and services for digital sales and distribution to private consumers through mobile operators in emerging markets. The company offers its corporate customers a comprehensive solution for digital distribution and electronic transactions processing. SDS acquired eServGlobal in July 2019. The SDS Group now has customers in all parts of the world, with a footprint in more than 50 countries, reaching over 500 million mobile users through more than 2,000,000 active points of sale. SDS has approximately 220 employees in Sweden, France, Romania, Belgium, Ghana, Nigeria, USA, Pakistan, India, Indonesia, South Africa, Ecuador and the United Arab Emirates. With over 30 years of experience, SDS focuses on high-level customer satisfaction and efficient operations. SDS manages over 15 billion transactions annually, worth more than 14 billion US dollars and enables the growing populations in emerging markets to become part of the mobile revolution.
SDS shares are listed on Nasdaq First North Premier.
The company's Certified Adviser is FNCA Sweden AB, phone number 08-528 00 399, email: info@fnca.se
Martin Schedin
Chief Financial Officer
070 438 14 42
martin.schedin@seamless.se
Subscribe to press releases and financial reports
