MIAMI, FL - (NewMediaWire) - October 14, 2015 - Net Element, Inc. (NASDAQ: NETE) ("Net Element" or the "Company"), a provider of global mobile payment technology solutions and value-added transactional services, launched its online payments processing business in Kyrgyzstan by securing a contract with Daroy.net, the country's largest online clothing store serving retail and wholesale customers from Kyrgyzstan, Russia, Kazakhstan, Armenia and Belarus.
"We had to choose a reliable partner for online payments on the website of our online store Daroy.net. Payments system PayOnline provided the most favorable conditions for cooperation, worked quickly and connected payment services on our site in the shortest possible time. We look forward to a strong partnership with Net Element that provides maximum benefit to our customers," commented Oleg Prokoshev, Managing Partner of Daroy.net.
In September 2015, the online store Daroy.net completed its e-commerce platform integration with PayOnline's payments gateway. This enabled Daroy.net to accept Visa®, Visa Electron®, MasterCard® and Maestro® cards for online commerce transactions. The new partnership is a part of PayOnline's development of the e-Commerce market for Central Asia and Eurasian Economic Union (EAEU). This effort began in June 2015 with our entrance into the Kazakhstan market through an agreement with Kazkommertsbank ("KKB"). KKB is one of the largest banks in Central Asia and this has allowed Net Element to enter into the emerging markets of Kazakhstan and now Kyrgyzstan.
"Emerging markets remain the engine of the world economy. Net Element is positioned to reach a larger emerging market share by virtue of our local presence in these markets and the high quality products we offer," commented Oleg Firer, CEO of Net Element. "To increase our market share, we are working to sign new agreements and increase our footprint in emerging markets that we understand well. PayOnline has established a payment solution which is unique for the Commonwealth of Independent States (CIS), EAEU and Central Asia regions and we continue to lead with innovative products and services in these emerging markets."
According to the State Agency of Communications of Kyrgyzstan, the number of Internet users in the country at the end of 2014 reached 4 million. For the first quarter of 2015 the total number of bank payment cards in circulation in Kyrgyzstan amounted to approximately one million which represented an increase of 35% compared to the same period last year. According to Payments Cards & Mobile, Kyrgyzstan card payments market is at an early stage of development, with foundations for sustained growth.
About Net Element
Net Element, Inc. (NASDAQ: NETE) operates a payments-as-a-service platform for small to medium enterprise ("SME") in the US, Russian Federation and other international markets. In the US, it aims to grow transactional revenue by offering innovative SME productivity services including its cloud based, restaurant point-of-sale solution Aptito. Internationally, Net Element's strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions such as UAE, CIS, EAEU, India and Latin America. It maintains offices in Miami, FL, Cyprus and Russia. Further information is available at www.netelement.com.
PayOnline provides flexible high-tech payment solutions to companies doing business on the Internet. We have wide experience in integration and customization of payment solutions for websites and mobile apps. We are able to arrange payments on the website of any commercial organization in a customer convenient, reliable and secure environment. Thousands of companies in CIS, Europe and Asia use PayOnline to accept payments online. For more information, please visit: www.payonline.ru/en or www.payonline.ru.
Kazkommertsbank is one of the largest commercial banks in the CIS/EAEU and is the largest by total assets in Kazakhstan. The Bank provides a wide range of banking and financial services to corporate and retail clients across Kazakhstan and the surrounding region. Incorporated in 1991, Kazkommertsbank is the leading provider of banking and financial services across every sector of Kazakhstan's economy.
Headquartered in Almaty, the Bank services its customers through a network of branches in 45 cities across Kazakhstan. Kazkommertsbank also has international banking subsidiaries in Tajikistan and the Russian Federation. For more information, please visit: http://en.kkb.kz.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, whether the Company's presence in emerging markets will result in additional business, whether the Company will be successful in signing new agreements to increase its footprint in emerging markets, whether Net Element can secure any additional financing and if such additional financing will be adequate to meet the Company's objectives. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Net Element and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) Net Element's ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Net Element's ability to maintain existing, and secure additional, contracts with users of its payment processing services; (iii) Net Element's ability to successfully expand in existing markets and enter new markets; (iv) Net Element's ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Net Element's business; (viii) changes in government licensing and regulation that may adversely affect Net Element's business; (ix) the risk that changes in consumer behavior could adversely affect Net Element's business; (x) Net Element's ability to protect its intellectual property; (xi) local, industry and general business and economic conditions; (xii) adverse effects of potentially deteriorating U.S.-Russia relations, including, without limitation, over a conflict related to Ukraine, including a risk of further U.S. government sanctions or other legal restrictions on U.S. businesses doing business in Russia. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K and the subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K filed by Net Element with the Securities and Exchange Commission. Net Element anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Net Element assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.