SOURCE: Net Element, Inc.

Net Element, Inc.

December 01, 2015 08:45 ET

Net Element's TOT Money Announces Record Growth and New Corporate Name

Net Element's Mobile Payment Subsidiary Achieves Record Milestone of Over 3 Million Recurring Mobile Payment Subscribers

MIAMI, FL--(Marketwired - Dec 1, 2015) - 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 mobile payments subsidiary has reached yet another growth milestone by exceeding 3 million recurring mobile payment subscribers in October 2015, which represents 171% increase since January 2015. The Company is also unveiling the new corporate name for its mobile payments business -- Digital Provider, which replaces its existing TOT Money brand. The new name and logo were introduced to reflect the evolution of the Company and its initiatives as a digital provider of mobile payment services and content monetization tools in emerging markets.

Record Growth for Mobile Payments Business
Evidencing impressive market penetration, Digital Provider's (formerly "TOT Money") monthly processed volume for October 2015 increased by 86% since January 2015 and 122% over October 2015. Digital Provider has also seen double digit, quarter over quarter growth in subscribers during 2015.

New services offered as part of the re-branding initiative:

  • Proprietary content monetization and management platform. Allows increased monetization of digital content by providing turn-key solutions for content owners and application developers, as well as an ability to work with content management partners who are interested in monetizing CIS audience
  • White label solution for digital content providers and sales partners. Offers advanced features allowing content partners to create cross media mobile marketing campaigns
  • Proprietary WAP-click platform available for deployment by Mobile Network Operators (MNOs) to increase mobile subscriber Average Revenue Per User (ARPU) as well as convenience for the end user
  • In house call centre with proprietary software solutions for quality control and direct interaction with end users 

"Over the past year our mobile payments business has grown significantly as we've added many new features and expanded beyond mobile payments to include digital content management and fulfilment," commented Oleg Firer, CEO of Net Element. "These incredible October figures reflect our commitment to serving emerging markets with an expansion of innovative services that further propel Net Element as a leading mobile payments and digital content provider in selected Emerging Markets."

"The company has built solid commercial and technical foundations for growth, building brand awareness is very important to us as we expand our services to digital content monetization," commented Mikhail Shabanov, Managing Director of Digital Provider.

Benefiting from a powerful suite of Digital Provider services such as premium SMS, WAP-click, Internet-click, in-app purchases and other direct-carrier billing integration services, mobile phone users are able to use their devices to make mobile payments by debiting their mobile operator account.

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 name change from TOT Money to DIgital Provider will have any material impact on the Company, whether the number of users and processing volume growth are sustainable or will yield positive results for the Company, whether the new service offerings will be adopted by customers or result in increased sales or revenues, 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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