Payment Club Announces $7 Million Financing to Create a Leading Subscription Based Company in the Payments Industry
August 24 2018 - 5:00AM
Financing led by company’s co-founders to support growth of
disruptive payments acceptance model
via NEWMEDIAWIRE --
Payment Club, Inc. (“Payment
Club” or the “Company”), a subscription-based payment service
provider that offers payment processing and value-added
point-of-sale (“POS”) services to merchants through simple
membership pricing plans, today announced that it has completed a
$7 million financing led by its co-founders in partnership with
Unified Payments, subsidiary of Net Element (NASDAQ: NETE) and its
institutional investor.
The financing was led by Payment Club’s co-founders with $2
million in equity. As part of Unified Payments’ “Team Unified”
partnership program and Unified Prosperity Financing program,
Unified Payments through its partnership with its institutional
investor arranged a $5 million credit facility for Payments
Club to fuel its growth initiatives, bringing total debt and equity
financing to $7 million.
Since its launch in late 2017, Payment Club has focused on
building a transparent payment acceptance model to support small
and medium size businesses in the United States. This disruptive
model is built on the foundation laid by Payment Club
co-founders Anthony Kutscher and Alex Ilinski, who have over 20
years of experience in the payments industry and who wanted to
address the frustration of merchants being serviced by merchant
services sales agents who lack knowledge of popular emerging
payment technologies.
“Having witnessed our model deliver exceptional outcomes and
drive demand, we knew we needed to partner with the reliable
technology provider and raise capital to reach more clients
faster,” commented Alex Ilinski, VP and co-founder of Payment
Club.
According to the Subscription Economy Index 2017, Zuora;
Eurostat; MEC+ analysis, the subscription business model has grown
exponentially in recent years. Globally, the total number of
companies offering a service based on subscription is estimated to
be around 28,000. In the past five years, revenue growth for
subscription companies has outstripped that of the retail indices
of the Nordics and global S&P 500 sales index.
“Utilizing a transparent subscription-based pricing model
combined with the latest technology solutions, Payment Club can
provide positive options to frustrated merchants and streamline
their payment processes,” commented Anthony Kutscher, President and
co-founder of Payment Club.
The Company will use the funding to expand nationwide and hire
up to 100 Payment Club membership advisors as well as create show
rooms where business owners can come in and experience the products
and get information on the variety of memberships the Company plans
to offer.
“Payment Club is an exceptional company that is revolutionizing
the way merchants pay for accepting cashless transactions, and we
look forward to a long term partnership with the Payment Club team
as they grow the business,” commented Vlad Sadovskiy, president of
integrated payments for Net Element.
About Payment Club
Payment Club is a subscription-based payments provider offering
variety of membership plans for value added services, POS and flat
fee payment acceptance with transparent, zero markup pricing. For
more information about Payment Club
visit www.paymentclub.com.
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 U.S. and
selected emerging markets. In the U.S., the Company aims to grow
transactional revenue by innovating SME productivity services using
blockchain technology solutions and Aptito, our cloud-based,
restaurant and retail point-of-sale solution. 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. Net Element was
ranked as one of the fastest growing companies in North America on
Deloitte's 2017 Technology Fast 500™. In 2017 the Company was
recognized by South Florida Business Journal as one of 2016's
fastest-growing technology companies. Further information is
available at www.NetElement.com.
Anthony Kutscher
5629991350
media@paymentclub.com
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