SOURCE: Net Element, Inc.

Net Element, Inc.

June 04, 2015 10:09 ET

Net Element Launches Payment Processing in Kazakhstan; Signs Premier Online Events Ticketer

Integration With Kazakhstan's Largest Bank Opens New Market With 60 Million Population

MIAMI, FL--(Marketwired - Jun 4, 2015) - Net Element, Inc. (NASDAQ: NETE) (the "Company") launched its online payments processing business in Kazakhstan by securing a contract with, the country's largest online events ticketing website and 2nd largest online merchant serving the Kazakhstan market.

A new agreement with Kazkommertsbank ("KAZKOM"), Kazakhstan's largest bank, allows Net Element's pending subsidiary PayOnline to process online transactions for merchants in the countries served by the bank, including also Russia, Kyrgyzstan and Tajikistan.

As part of the agreement, Net Element will receive preferred partner processing rates as well as merchant referrals from KAZKOM.

The Company will now provide bankcard processing, mobile payments, person-to-person payments and business-to-consumer lending in the region.

As one of the largest commercial banks in the Commonwealth of Independent States region, KAZKOM has over 2.4 million cardholders and 2,200 ATMs.

Total population in the region served by the bank is approximately 60 million.

According to Kazakhstan Ministry of Transport and Communications, e-commerce in the region is forecast to be $3.6 billion in 2015 and grow to $5 billion in 2017.

"Net Element's facilitation of this banking relationship with its pending acquisition PayOnline is an example of how we intend to grow in emerging markets, where we can nimbly deliver those services best suited for a given market," commented Oleg Firer, CEO. "We expect this agreement to accelerate our growth in the region."

About Net Element 
Net Element (NASDAQ: NETE) is a global payments-as-a-service, technology provider with an integrated mobile and transactional services platform. Its wholly owned subsidiary, TOT Group operates Aptito providing transaction processing and value-added services utilizing a next generation, cloud-based, point of sale payments platform. The Company also operates TOT Money, a leading mobile payments service provider that has been ranked in the Top 3 mobile payments providers by Beeline, Russia's second largest telecommunications operator. Further information is available at

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 contract with or the relationship with Kazkommertsbank will be beneficial to the Company or result in accelerating the Company's growth in the region, 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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