Conduent to Modernize Government Benefits Disbursement System for American Samoa Recipients

Rhea-AI Summary

Conduent Incorporated (Nasdaq: CNDT) has been chosen by the American Samoa Department of Human and Social Services to modernize the American Samoa Nutrition Assistance Program (ASNAP). The project will convert the current paper voucher system to Electronic Benefits Transfer (EBT) cards for nearly 5,000 recipients by 2024. This upgrade will provide:

1. Enhanced security and convenience for beneficiaries
2. Online portal and mobile app for benefit management
3. Improved reporting capabilities for the department

The modernization aligns with ASNAP's 30th anniversary and eliminates the need for physical benefit collection. Conduent's extensive experience in government payment solutions positions it to meet the needs of both cardholders and retailers effectively.

Positive

• Secured a contract with American Samoa DHSS to modernize ASNAP
• Will implement EBT card system for 5,000 recipients, replacing paper vouchers
• Introducing online portal and mobile app for improved benefit management
• Expanding Conduent's presence in government payment solutions

Negative

• None.

Financial Analyst

Conduent's contract with American Samoa's DHSS represents a positive development for the company's government solutions segment. While the exact financial terms aren't disclosed, the deal expands Conduent's footprint in U.S. territories and strengthens its position in the government benefits disbursement market. The contract likely offers steady, recurring revenue given the essential nature of the ASNAP program. However, with only 5,000 recipients, the immediate financial impact may be Long-term, this project could serve as a reference case for similar modernization efforts in other regions, potentially leading to more significant contracts. Investors should view this as a modest positive for Conduent's business development efforts in the government sector.

Tech Expert

The modernization of American Samoa's ASNAP system showcases Conduent's technological capabilities in government services. The transition from paper vouchers to EBT cards represents a significant upgrade in security and efficiency. The addition of online portals and mobile applications for benefit management aligns with current digital transformation trends in public services. This project demonstrates Conduent's ability to integrate multiple technologies - electronic payment systems, web portals and mobile apps - into a cohesive solution. While not groundbreaking, these technologies are important for government agencies seeking to modernize their operations and improve service delivery. The successful implementation could position Conduent as a go-to provider for similar modernization projects in other regions.

Market Research Analyst

This contract win for Conduent highlights a growing market opportunity in modernizing government benefit systems. As more jurisdictions seek to upgrade their legacy systems, companies with proven track records in this space stand to benefit. The project's scope, including EBT cards, online portals and mobile apps, reflects the increasing demand for digital-first solutions in public services. While the American Samoa market is small, it serves as a strategic entry point into the broader Pacific Island region. Conduent's success here could lead to similar projects in neighboring territories or states. The company's existing presence in 37 states for government payment disbursements provides a solid foundation for expansion. Investors should monitor Conduent's performance in this project as an indicator of its potential to capture more market share in government technology modernization efforts.

With Conduent, American Samoa will convert its paper voucher system to EBT cards and offer online and mobile access capabilities

FLORHAM PARK, N.J.--(BUSINESS WIRE)-- Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, has been selected by the American Samoa Department of Human and Social Services (DHSS) to modernize and convert the U.S. territory’s legacy American Samoa Nutrition Assistance Program (ASNAP) system.

As of 2024, nearly 5,000 needy, elderly, blind or disabled individuals in American Samoa receive ASNAP benefits from the government. These benefits provide essential food assistance to supplement their nutritional needs. Supported by Conduent, ASNAP recipients will be able to receive their benefits through safer and more secure Electronic Benefits Transfer (EBT) cards.

Rather than waiting for paper vouchers to use their benefits, ASNAP recipients will now be able to buy groceries and other items with electronic EBT cards. The conversion to cards will eliminate the risk of losing funds if paper vouchers are lost. Recipients will be able to track and manage their benefits through an online portal, and a new mobile application will allow users to access their benefits information and customer service support directly from their smartphones. The department will also be able to utilize the portal to access information about recipient management and card issuance and comply with federal reporting requirements.

“We are very excited to have selected an experienced company who can provide comprehensive and reliable EBT solutions for the ASNAP, and who can serve as a true partner over the life of the contract,” said DHSS Director Muavaefa’atasi John E. Suisala. “With over 25 years of government payment card experience and secure and reliable technology, we are confident that Conduent will meet all cardholder and retailer needs, along with our expectations for improved services for our clients through the use of EBT cards and mobile apps to improve their shopping experience. This project will also eliminate the need for clients to physically pick up benefits each month and is very timely, as we celebrate 30 years of ASNAP in American Samoa.”

“We recognize the importance of being able to provide secure, reliable disbursement solutions that deliver important benefits to individuals who rely on them daily, and we are proud to now deliver those same assurances to the government and people of American Samoa,” said Wade Fairey, General Manager, Payments and Child Support Solutions at Conduent. “By leveraging Conduent’s proven solutions to streamline benefits delivery and management, we are improving efficiency, making it easier and more convenient for people to access their benefits, and enhancing the overall well-being and security of the agencies we serve."

Conduent’s Government Solutions provide U.S. agencies with solutions for healthcare claims administration, government benefit payments, eligibility and enrollment, and child support. Conduent is a leader in government payment disbursements, delivering electronic payments for services in 37 states and supporting critical, federally sponsored programs like the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF).

About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 55,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at www.conduent.com.

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Trademarks
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240905251097/en/

Media Contact:

Neil Franz, Conduent, +1-240-687-0127, neil.franz@conduent.com

Investor Relations Contact:

Giles Goodburn, Conduent, +1-203-216-3546, ir@conduent.com

Source: Conduent Incorporated

FAQ

What is Conduent's role in modernizing American Samoa's nutrition assistance program?

Conduent (CNDT) will convert American Samoa's paper voucher system to Electronic Benefits Transfer (EBT) cards for the American Samoa Nutrition Assistance Program (ASNAP), serving nearly 5,000 recipients by 2024.

How will the new EBT system benefit ASNAP recipients?

The EBT system will provide ASNAP recipients with safer and more secure benefit disbursement, eliminate the risk of losing funds from lost paper vouchers, and offer online and mobile access for managing benefits.

What new features will be available to ASNAP recipients with Conduent's system?

ASNAP recipients will have access to an online portal to track and manage their benefits, a mobile application for accessing benefit information, and customer service support directly from their smartphones.

How many states does Conduent support with government payment disbursements?

Conduent delivers electronic payments for government services in 37 states, supporting critical federally sponsored programs like SNAP and TANF.