SOURCE: Net Element, Inc.

Net Element, Inc.

September 20, 2016 08:45 ET

Net Element Announces Growth in Transaction Processing Volume

Company Demonstrates Year-Over-Year Transaction Dollar Processing Growth of 77%

MIAMI, FL--(Marketwired - Sep 20, 2016) - Net Element, Inc. (NASDAQ: NETE) ("us" or "we"), a provider of global mobile payment technology solutions and value-added transactional services, announced today its transactions processing volumes for the first 7 months of 2016 as compared to the same period in 2015.

Discounting the effects of foreign currency exchange, total dollars processed from January 2016 through July 2016 increased 77% to $1,025.8 million from $592.7 million in transaction volume during the same period in 2015. Online solutions saw the largest increase of 90% from $160.9 to $305.0 million. Mobile solutions processed increased 84% from $12.8 to $23.4 million, predominantly driven by the introduction of branded content. North America transactions solutions increased 66% from $419.1 million to $697.4 million. Effects of foreign currency exchange were eliminated by converting rubles to dollars at the average rate for July 2016 for both periods.

Oleg Firer, CEO of Net Element, commented, "We are pleased with our continued growth and further penetration into emerging markets. Our growth is facilitated by our innovative, customer-focused products and services and delivered by teams of outstanding people. We are hopeful that this trend will continue for the remainder of 2016 and beyond."

Total transactions processed during the first 7 months of 2015 were 75.3 million compared to 99.0 million for the same period in 2016. The 32% increase in transactions processed came primarily from North America Transactions solutions which saw a 67% increase from 26.7 million to 44.5 million. Online solutions experienced a 27% increase from 11.6 million to 14.7 million transactions. Mobile solutions processed 37.0 versus 39.7 million which represented a 7% increase. The majority of growth in all segments was organic.

The accompanying charts represent our geographic breakdown of processed dollar volume and processed transaction volume between North America and Emerging Markets.

Total transaction dollars processed geographically in North America and Emerging Markets year-to-date through July 2016 were $697.4 million and $328.4 million respectively, which represents an increase of 66% and 89% over the same time period in 2015. Total number of transactions processed in North America and Emerging Markets year-to-date through July 2016 were 44.5 million and 54.4 million respectively, which represents an increase of 67% and 12% over the same period in 2015.

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 US and selected emerging markets. In the US, we are growing transactional revenue with innovative services including our 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, Kazakhstan, Kyrgyzstan and Azerbaijan where initiatives have been recently launched. Further information is available at www.netelement.com.

Forward-Looking Statements

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 transactions growth experienced by the Company will continue, 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.

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