Under this expansion, the full suite of Net Element's Digital
Provider services -- which includes DCB, one-click mobile payments,
HTML5 services, PSMS, WAP automated phone billing, subscription by
PIN, PIN submit, A2P/P2A, SMS billing, and mobile commerce -- is
now available in Poland and Turkey, where Digital Provider's
anti-fraud platform with advanced authentication technology and
in-house call center platform will also be utilized.
Integration allows billing on all major mobile network operators
in the region, which in Poland includes Orange, Plus, Play, and
T-Mobile, and in Turkey includes Turk Telekom, Turkcell and
Vodafone.
Content providers and aggregators in these emerging markets are
now able to increase their conversion and sales volumes by tapping
into the full power of mobile commerce, and provide their customers
the ability to use their mobile devices as a form of payment for
on-demand and subscription-based services using the one-click
payments module over a data connection. This capability is part of
Digital Provider's proprietary Trinity Platform that allows Digital
Provider to bill mobile network operators on behalf of mobile
users. Payments are processed without any additional information
from the mobile user, which provides a significant conversion
improvement compared to other payment methods.
DCB is a major revenue stream for mobile network operators in
developing economies. According to Juniper Research, DCB in
emerging countries generates app-store conversion rates about five
times higher than credit cards. Digital sales include music,
ringtones, e-books and apps. The advantage of using a mobile phone
for the latter is that the transaction remains anonymous.
SuperData Research estimates carrier billing to be the second
most popular payment method in Poland (19.4%) and the fourth most
popular payment method in Turkey (8%) after digital wallets for
payments in games.
"Direct carrier billing solutions from Digital Provider allows
anyone with a mobile phone to make payments," commented Mikhail
Shabanov, General Director of Digital Provider. "Direct carrier
billing requires the mobile user only to enter their phone number
to make a payment. In contrast, card-based payments require the
user to share their name, card number, home address etc. Due to a
shorter checkout time, merchants using both payment methods report
significantly better conversion rates with carrier billing than
with credit cards."
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 and retail 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. Net Element was named in
2016 by South Florida Business Journal as one of the fastest
growing technology companies. Further information is available
at www.netelement.com.
Forward-Looking Statements
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. 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 whether the introduction of Direct Carrier Billing
and other services offered by the Company into Poland and Turkey
will positively impact the Company. Additional examples of such
risks and uncertainties are : (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, 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.