- Net
Element subsidiary Netevia processed $1.62 billion in transactions during
first half of 2018, with $1.4 billion occurring in North America
- Company’s
PayOnline subsidiary part of reorganization involving international
business, mobile payments solutions
- Net
revenues rose 15 percent during the first half of the year, with gross
profits expected to rise another $6.5 million during the next four years
Payment processing technology company Net Element, Inc.
(NASDAQ: NETE) is seeing rising revenues from its North American market and is
weighing options for monetizing mobile operations on a global scale through its
agent contracts, while additional value-added efforts have branded it a company
that continues to identify growth initiatives with independent equity research
firm SeeThruEquity (http://ibn.fm/gFC7s).
An edited transcript of Net Element’s August 15 earnings
conference call released recently (http://ibn.fm/4i3me) notes the dominance of domestic
transactions in the company’s revenue report amid anticipated declines in the
global payment solutions’ international arena of operations due to the
elimination of branded content business as Net Element takes an opportunity to
reorganize its international business and join its mobile payments operations
with multi-channel subsidiary PayOnline.
The company’s North American Transaction Solutions segment
saw net revenue growth over the prior year, according to the earnings report,
with a six percent increase for the second quarter and a 15 percent increase
for the six-month period. The United States accounted for 88 percent of the
quarter’s total revenues, and 87 percent of the six-month total.
A solid sign of the success of Net Element’s Netevia
processing platform is that the value of the financial transactions that the
company processed grew from $1.18 billion in the first half of 2017 to $1.62
billion in the comparable period of 2018, with $1.4 billion of that amount
occurring in North America. The number of transactions processed by the company
grew from 35.7 million to 50.2 million.
Net Element’s expertise lies in providing multiple payment
channel options to small and medium-sized businesses and their customers while
adapting its platform to the particular needs of brick and mortar, unbanked and
web-based businesses trying to get optimal results from their revenue streams.
Netevia employs single-use credit card numbers for
electronic transactions as a means of combatting fraud when its customers share
card information across the internet in e-commerce, for example. The company’s
mobile Unified Payments subsidiary is helping smaller-sized businesses combat
onerous card transaction fees by employing a subscription model that reduces
many of the complications associated with services that aren’t fully responsive
to the end user.
“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,” Payment Club President Anthony Kutscher stated in a news release (http://ibn.fm/YYEZk).
CEO Oleg Firer told participants in last month’s conference
call that the company is also on track to launch services such as blockchain
technology solutions that have been in the works.
“Combined, these strategic initiatives are expected to add
over $6.5 million in gross profit over the next 4 years. We’re on track to
deliver another year of growth and financial improvement and are pleased with
our results as we continue to focus on long-term growth plans,” he said.
For more information, visit the company’s website at www.NetElement.com
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