- Net Element payment processing tech options assist industries according to individualized needs
- Partnership with Russian bank set to boost country’s aging financial network
- Most recent reports show growing net revenues as company prioritizes market needs close to home
In a world where emerging business enterprises are continually searching for ways to move money when the businesses don’t fully conform to the rigid expectations of the banking and lending community, payment processing technology providers such as Net Element, Inc. (NASDAQ: NETE) are helping to keep markets flowing on a global scale and providing a foundation for investors to stand on as they uphold entire industries.
Net Element’s decision to join its mobile payments operations with multi-channel subsidiary PayOnline increased its ability to serve small and medium-sized businesses and their customers with a growing number of payment options. The company works to adapt its platform so it can fit the individual needs of store front businesses and unbanked and web-based enterprises — all of which serve their customers in a variety of different ways.
While the company has scaled back its European activities, its recently announced partnership with Sputnik Bank in Russia to provide third-party bank processing to other banks throughout the country (http://ibn.fm/SefZV) shows its ability to work in the international arena and its drive to establish financial services wherever the need presents itself.
“We believe this is the first bank to provide a wholesale service to other Russian banks and if executed properly could be a huge success,” the company stated in a news release. “In the future, this entity could even be spun off into its own independent fintech company like many of the banks in the US have done.”
The news release added the company’s belief that all of Russia’s banks use in-house systems, many of which have not been upgraded to modern standards since the systems were created in the wake of the Soviet Union’s dissolution in the early ‘90s.
“Sputnik is expected to move its own in-house system over to this venture and will sell the processing service to small banks, third-party vendors, value-added resellers, credit organizations and sales organizations. Due to economies of scale of bank and payment processing, one large entity can more efficiently manage a system and the smaller banks will be able to outsource their IT at what is expected to be a much lower cost,” the company continued.
Closer to home, Net Element’s VIP Payments solution offers technological capabilities to hotel and tourism industry enterprises (http://ibn.fm/qLgmf); Netevia offers a subscription-based, transparent online payments solution for brick and mortar businesses’ e-commerce and B2B needs (http://ibn.fm/oDv91); Aptito provides support to the restaurant industry (http://ibn.fm/roG0r); and Unified Mobile Payments is designed with the kiosk and truck vendor in mind (http://ibn.fm/uB0ji).
“We work directly with payment card networks and banks so that our merchants do not need to manage the complex systems, rules, and requirements of the payments industry,” the company stated in its most recent 10-Q quarterly report.
Net Element’s 8-K report issued during the same period states that the company had a net revenues increase of $16.46 million for the three months ended June 30 of this year, which was an increase of two percent over the second quarter of 2017. The company’s net revenues for the six months leading up to the most recent reporting was up nine percent over the previous year to $32.45 million.
For more information, visit the company’s website at www.NetElement.com
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