SOURCE: Net Element, Inc.

Net Element, Inc.

August 25, 2016 08:45 ET

Net Element's PayOnline Partners With Round Bank

PayOnline Integrated the First 70 Online Merchants to Its Platform Under New Collaboration Agreement With Round Bank

MIAMI, FL--(Marketwired - Aug 25, 2016) - Net Element, Inc. (NASDAQ: NETE) ("Net Element" or the "Company"), a provider of global mobile payment technology solutions and value-added transactional services, today announced that its subsidiary PayOnline, has entered into a transaction processing agreement with OOO Bank Round ("Round Bank"), a Russian Federation licensed commercial bank. The agreement includes transaction clearing, draft capture and settlement of bankcard transactions in the Russian Federation.

"PayOnline holds a leading position in the Russian market," commented Yegor Davydov, Director of Business Development of Round Bank. "We are pleased to have signed a partnership agreement with PayOnline. Modern technology, a high level of security and an individual approach to every client are all necessary ingredients for a successful Internet payment processing business. These characteristics are inherent in PayOnline, a company that prides itself on product development, security and innovation. We are confident that our relationship with PayOnline will be fruitful and mutually beneficial."

One of the first clients of PayOnline to begin processing utilizing Round Bank is LoveKorea.Ru, an online retailer of Korean cosmetic products in Moscow. Founder of LoveKorea.Ru, George Eksuzyana shared his first impressions:

"We just started working with Round Bank, but the bank has already shown itself as a good partner. Reliability in payments acceptance for e-commerce is one of the main objectives when choosing a financial institution. The dependability and stability of the bank's technology partners are the most important factors in business development. In this regard we look forward to working with Round Bank and PayOnline."

"We are excited about our partnership with Round Bank as we continue to innovate and invest in disruptive products that make us a key differentiator in the markets we serve," commented Marat Abasaliev, CEO of PayOnline.

About Round Bank

OOO Bank Round ("Round Bank") was founded in 1993 is a commercial bank, active in corporate banking and is a member of the State Deposit Insurance Fund system. For more than twenty-year history, Round Bank has earned an image as a reliable financial partner for both business and private clients. Round Bank is headquartered in Moscow, Russia. For more information, visit www.round.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 US and selected emerging 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, 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 agreement with Round Bank will have a positive impact on the Company, whether Net Element can secure any additional financing and if such additional financing will be adequate to meet the Company's objectives and whether the transaction will add to the growth of the Company's business and increase the Company's market share internationally. 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) the Company's issuances of the Company's common stock from time to time in exchange for retiring the Company's debt may cause substantial dilution to our existing stockholders and the sale of the shares of our common stock acquired by Crede in exchange for our debt could cause the price of our common stock to decline; (xiii) 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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