Net Element, Inc. (NASDAQ: NETE) is a global, technology-driven company specializing in mobile payments and value-added transactional services. In the U.S., the company’s primary focus lies on increasing its transactional revenue through the introduction of innovative, payments-as-a-service transactional platforms to small to medium enterprise (SME) clients. Net Element’s flagship platform, Aptito, accomplishes this goal by way of a proprietary, cloud-based point of sale solution designed to deliver efficient operation in an affordable and scalable package.
Initially, Aptito was targeted exclusively at the restaurant industry, offering innovative features such as digital menus and mobile ordering designed to promote faster service while minimizing mistakes. In March, the company expanded upon this solution when it released Aptito for retail stores. Currently available on Apple’s (NASDAQ: AAPL) iOS platform, Aptito Retail Point of Sale allows retailers to improve in-store performance by seamlessly tracking purchasing habits, managing inventory and minimizing transaction times. The platform can also be integrated with a number of peripherals, such as a fully integrated cash drawer, thermal receipt printer, barcode scanner, barcode printer and EMV-compliant point of sale acceptance terminal, based on the unique needs of individual retailers.
By expanding its presence in the point of sale software industry, Net Element is well-positioned to capitalize on forecast market growth related to the proliferation of multi-channel shopping and updating of legacy systems. Despite the continued emergence of ecommerce, retail spending continues to dominate the U.S. buying landscape. According to a report by Javelin Strategy & Research (http://dtn.fm/7Bd6c), retail point of sale purchases are expected to reach $4.2 trillion by 2018. Alongside this growth, demand for mobile point of sale platforms is expected to skyrocket. According to 451 Research (http://dtn.fm/J94ge), the global installed base of mobile point of sale devices is on course to grow at a compound annual growth rate of 32 percent from 2015 to 2019, expanding from 13 million devices to just over 54 million.
“In a highly competitive retail industry, we recognize that now more than ever, smaller retailers must focus on providing their customers with the best in-store experience to improve retention, attract new customers and sustain repeat spending,” Oleg Firer, chief executive officer of Net Element, stated in a news release. “Aptito Retail POS solution gives retailers insight into their customer’s behavior and streamlines payment processes, allowing merchants to focus on their business.”
On the international stage, Net Element is focused on delivering its omni-channel payments platform to emerging markets with diverse banking, regulatory and demographic conditions. In March, the company launched Aptito in Russia in an effort to capitalize on the country’s forecast growth of information technologies. According to a joint study by the Association of Computer Equipment Companies and McKinsey, growth of information technologies in the Russian market is expected to be roughly 25 percent per year, climbing to $154 billion by 2020. This move continues to highlight Net Element’s commitment to establishing itself on the global stage, as detailed by the company’s CEO.
“We are entering an underserved point of sale software market, that has tremendous opportunity,” added Firer. “Approximately 39% of our revenues came from outside of the United States, up from 9% a year ago, and this trend continues to grow.”
Earlier this week, Net Element provided another update on its growth in the Russian Federation when it announced that its wholly-owned subsidiary, Digital Provider, enabled mobile payments acceptance for Wi-Fi Internet access at one of the busiest airports in the country. Another of the company’s subsidiaries, PayOnline, was ranked as a top five payment acceptance company in the 2016 Internet Acquiring Rank report of Russian analytics agency Markswebb Rank & Report. According to Markswebb, roughly 80 percent of Russian internet users between the ages of 19 and 64 (about 43.8 million people) make at least one online purchase per month, further highlighting the significant opportunities for growth currently being pursued by Net Element and its subsidiaries.
In the first quarter of 2016, Net Element’s commitment to growth and innovation helped it achieve strong financial performance in a number of markets. The company’s net revenues for the three months ended March 31, 2016, were over $11.2 million, up 103 percent from the comparable period of the previous year. With the launch of Aptito for retail stores and entry into the Russian market, Net Element is strategically positioned to build on these results throughout the balance of 2016.
Net Element is led by an experienced management team offering a unique blend of leadership, vision and creativity. The company’s CEO, Oleg Firer, is responsible for its overall vision and strategy. Firer has considerable experience in the payments space, having previously served as executive chairman of current Net Element subsidiary Unified Payments. Under Firer’s lead, Unified Payments recorded revenue growth of 23,646 percent over a three year period, earning it the title of ‘Fastest Growing Company’ from Inc. Magazine in 2012. Prior to his time with Unified Payments, Firer held numerous senior executive positions in private equity, payment processing, wireless communications and technology firms.
For more information, visit www.netelement.com
