New Offering Targets the Multi-Billion Dollar Subscription Economy and Gains Traction Through a Partnership Agreement with Payment Club, Projected to Add Over $1.5 Million in Gross Profits Over the Next 4 Years
MIAMI, FL, Aug. 09, 2018 (GLOBE NEWSWIRE) -- 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, announces the launch of subscription-based payment processing offering aimed at small businesses in the United States. This new offering gains traction through partnership agreement with Payment Club, projected to add over $1.5 million in gross profits over the next four years.
The subscription economy has taken commerce by storm. From music and television to beauty and groceries, consumers have grown comfortable with storing their credit cards on file to receive products and services on a recurring basis from brands they love. According to MGI Research, the total addressable market for Subscription Economy technology providers will reach $102 billion by 2020.
Unified Payments’ newly created subscription-based billing engine allows Payment Club and many Independent Software Vendors (ISVs), Value Added Resellers (VARS) and Independent Sales Organizations (ISOs) to bill and manage any payment services and software licenses in a convenient and transparent way. The turn-key solution includes everything needed for businesses to accept payments in a multi-channel environment including smart point-of-sale devices for card present transactions, fully integrated point of sale systems, as well as online and mobile solutions developed exclusively for Payment Club by Net Element. The Company plans to expand these services across it’s platforms including Netevia.
Payment Club offers subscription-based payment processing services for a flat monthly fee. The transparent billing structure with no hidden fees and value-added service options make this program very attractive for small businesses and stands out from the competition. As part of Unified Payments’ “Team Unified” partnership program and Financing program, the Company has arranged for $5 million credit facility for the Payment Club to fuel its growth initiatives.
Payment Club membership benefits include:
- Multi-channel payment acceptance
- Fast, friction-less boarding
- 24/7 support
- Low monthly flat fee
- Value-added service options
“Small businesses often complain about the fees they pay for accepting cashless transactions and the burden it places on their business,” commented Vlad Sadovskiy, president of integrated payments for Net Element. “At Unified Payments, we make it fast, easy and affordable to accept cashless payments using the newly introduced subscription-based processing.”
“We worked hard for many months on assuring the potential success of this project and we are both impressed and delighted with our relationship with Net Element and its management team,” commented Anthony Kutcher co-founder and president of Payment Club. “This partnership brings both the technology stack that allows us to bring value-added offerings to our merchants and capital needed to grow our business,” added Alex Ilinski, EVP of business development for Payment Club. “With an addition of Unified Prosperity Financing, we now have up to $7 million available to grow the business.”
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.
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 Company’s plans to expand the services it provides to Payment Club across its various platforms will materialize. 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.