Payment processing center to enable financial institutions and value-added providers to meet consumer demand for secure frictionless payment acceptance services
MIAMI, FL, Oct. 02, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Net Element, Inc. (NASDAQ: NETE) (“Net Element” or the “Company”), a global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment including point-of-sale (“POS”), e-commerce and mobile devices, announced that it has entered into a memorandum of understanding with Bank Sputnik to launch a technology platform expected to provide a suite of frictionless payment acceptance services for financial institutions and value-added providers. Bank Sputnik provides a full range of banking services to businesses. The payment processing center would integrate Bank Sputnik’s expertise in enabling secure globally interoperable financial transactions with Net Element’s expertise in developing frictionless value-added payment acceptance services.
Russia is one of the top 10 global economies in terms of volume of cashless payments (World Payment Report 2016). This new payment processing center is expected to accelerate the delivery of payment acceptance services in this market, combining banking services and bill payments in a multi-channel environment.
Per the memorandum of understanding, it is contemplated that Net Element will execute the deployment, launch and servicing of the payment processing center in exchange for 25% of issued and outstanding shares of Bank Sputnik. The bank will provide the capacity for the data center for deployment and subsequent use of software required for the implementation of the program, as well as financial instruments for settlement of transactions and funding required for the development and implementation. This joint venture with Bank Sputnik is subject to approval of the shareholders of Bank Sputnik and the bank’s regulators, and the parties’ negotiating and entering into a binding definitive agreement.
“This exciting partnership with Bank Sputnik will enable the companies to join forces to create a multi-channel payment processing center focused on value-added services,” commented Vlad Sadovskiy, president of integrated payments for Net Element.
“Together, Bank Sputnik and Net Element will be able to provide financial institutions and value-added providers in Russia with frictionless payment acceptance services in one single resource,” commented Evgeni Rostovtsev chairman of Bank Sputnik.
About Bank Sputnik
Commercial Bank "Sputnik" was founded in 1990 and is known in the Russian financial market as a universal bank that provides a full range of banking services to both private and corporate clients. These services include payment cards, deposit accounts, wealth management and interbank cooperation. Further information is available at http://www.banksputnik.ru.
About Net Element
Net Element, Inc. (NASDAQ: NETE) operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise ("SME") in the U.S. and selected emerging markets. In the U.S., the Company aims to grow transactional revenue by innovating SME productivity services using blockchain technology solutions and Aptito, our cloud-based, restaurant and retail point-of-sale solution. 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. Net Element was ranked as one of the fastest growing companies in North America on Deloitte's 2017 Technology Fast 500™. In 2017 we were recognized by South Florida Business Journal as one of 2016's fastest-growing technology companies. Further information is available at www.NetElement.com.
Forward-Looking Statements
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. 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 whether the newly created payment processing center will result in accelerating the delivery of payment acceptance services in the Russian market and if, as and when the closing of the contemplated transaction materializes, whether the joint venture will be successful or yield positive results for the Company. Additional 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; and (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, 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.
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