SOURCE: Net Element, Inc.

Net Element, Inc.

February 17, 2016 08:51 ET

Net Element's Digital Provider Enters Azerbaijan's Rising Mobile Payments Market; Signs National TV Network

Providing Access to Mobile Operators in the Region Yields Further Expansion Into Emerging Markets

MIAMI, FL--(Marketwired - Feb 17, 2016) -  Net Element, Inc. (NASDAQ: NETE) ("Net Element" or the "Company"), provider of global mobile payment technology solutions and value-added transactional services launched its mobile payments offering in Azerbaijan. This new integration allows content providers and aggregators access to all major mobile operators in the country and use Net Element's Digital Provider mobile payments platform to facilitate payments for its subscribers. In addition, the Company has secured a contract with a national television network, Dunaya ("The World") TV, to provide interactive television services such as voting and content monetization using one-click mobile billing.

The full suite of Net Element's Digital Provider services including direct-carrier billing, one click mobile payments, SMS billing and mobile commerce, are now available in the region. Digital Provider also provides its anti-fraud platform with advanced authentication technology.

Content providers and aggregators in the region are now able to increase their sales volumes by tapping into the full power of mobile commerce and provide their clients the ability to use their mobile devices as a form of payment.

With major smartphone brands such as Apple and Samsung making a big entrance into the mobile payment business, the total revenue of the worldwide mobile payments market reached US$450 billion in 2015, according to the global market research firm TrendForce. By the end of 2016, total revenue is estimated to reach US$620 billion, representing year on year growth of 37.8%.

"We are pleased with our expansion efforts into the growing market of Azerbaijan, where smartphone penetration has reached over 60% and continues to grow," commented Mikhail Shabanov, Managing Director of Digital Provider.

"We continue to expand in emerging markets with the strategic aim to be the premier leader in transactional services and mobile payments in these markets. PayOnline and Digital Provider have expanded their operations in three countries in the past six months, we continue to look for the opportunities in the emerging countries and maximize capitalization of our existing platform and infrastructure," commented Oleg Firer, CEO of Net Element.

About Digital Provider
OOO Digital Provider ("Digital Provider"), a subsidiary of Net Element, Inc., is a direct carrier billing and mobile payments provider that facilitates the payment, aggregation and distribution of secure, modern mobile transactions. Digital Provider works with the largest mobile operators in Commonwealth Independent States (CIS) and selected emerging markets. Digital Provider services a wide range of clients including content providers, social media networks, game developers and merchants offering a broad array of payment options, and a flexible interface. Digital Provider is positioned as an industry leader in the growing CIS mobile payments market. Further information is available at http://digitalprovider.ru/en/.

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, Russian Federation and other international markets. In the US it aims to grow transactional revenue by innovating SME productivity services such as 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, Kazakhstan, India and Latin America where initiatives have been recently launched. It maintains offices in Miami, FL and in Russia. 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 company's entry into the Azerbaijan region will have any positive impact, 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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