With the execution of
acquisition documents for PayOnline still fresh on investors’ minds, Net
Element, Inc. (NASDAQ: NETE) wasted no time in further expanding its global
reach, entering into an agreement to begin payment processing services in
Kazakhstan. On Thursday, the company secured a contract with Kassir.com,
Kazakhstan’s largest online events ticketing website and second largest online
merchant, effectively launching its payment processing business in the country.
In addition, an agreement with
Kazakhstan’s largest bank, Kazkommertsbank (KAZKOM), will allow Net Element,
through pending subsidiary PayOnline, to process online transactions throughout
the region, including areas of Russia, Kyrgyzstan and Tajikistan. The agreement
provides immediate access to a network of over 2.4 million cardholders
throughout the Commonwealth of Independent States, as well as ensuring that the
company receives preferred partner processing rates and merchant referrals from
KAZKOM moving forward.
“Net Element’s facilitation of
this banking relationship with its pending acquisition PayOnline is an example
of how we intend to grow in emerging markets, where we can nimbly deliver those
services best suited for a given market,” stated Oleg Firer, Chief Executive
Officer of Net Element. “We expect this agreement to accelerate our growth in
the region.”
Like many markets around the
globe, the Commonwealth of Independent States has been experiencing tremendous
growth in the ecommerce sector in recent years. According to the Kazakhstan
Ministry of Transport and Communications, domestic ecommerce is forecasted to
be a $3.6 billion industry in 2015, and continued growth to $5 billion is
expected by 2017. By securing a deal with the country’s largest bank, Net
Element is in a strong position to capitalize on this growth through
unobstructed access to the approximately 60 million people living throughout
the region.
As expected, PayOnline is
providing Net Element with a strong platform for rapid global growth. A leader
in online transaction processing services and payment technology, the company’s
pending subsidiary has an established network throughout the Russian
Federation, Europe and Asia with over 10 million active consumers and thousands
of merchants. Through the KAZKOM agreement and similar future deals, Net
Element is in a formidable position to continue growing market share in vital
markets around the globe. For investors, this could spell big returns in the
months to come.
For more information, visit
www.netelement.com
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