MIAMI, March 12, 2015 /PRNewswire/ -- Net Element, Inc. (NASDAQ: NETE) ("Net Element" or the "Company"), a technology-driven group specializing in mobile payments and value-added transactional services in emerging countries and in the United States, announces that its subsidiary, OOO TOT Money ("TOT Money"), has reached a crucial company milestone by exceeding 1 million recurring mobile payment subscribers in January 2015.
Evidencing impressive market penetration, TOT Money's monthly processed volume for January 2015 increased by 12% over the prior month and 49% over April 2014, which was when the new TOT Money platform was launched. TOT Money has also seen a double digit, quarter over quarter growth in subscribers during 2014.
This growth reaffirms TOT Money as an industry leader in the growing mobile payments market in Russia where the company captures a 10% share of the overall market, according to a market size assessment by J'son & Partners Consulting report of the Russian Market of Mobile Operators Payments. In addition, TOT Money has maintained the rank as a Top 3 mobile payments provider for 2 consecutive years, according to a rating published by Russia's 2nd largest telecom provider, OSJC VimpelCom, a wholly owned subsidiary of VimpelCom Ltd, providing services under the "Beeline" brand in Russia.
J'Son & Partners Consulting forecasts the turnover of payments more than 50.6 billion RUB in 2018 and the compound annual growth (CAGR) in the period of 2013 – 2018 is expected to be 31%.
"These incredible January figures reflect our commitment to serving emerging markets with an expansion of innovative services that further propel Net Element as a leading payment-as-a-service provider in Russia and the CIS," states Net Element CEO Oleg Firer. "We view this achievement as evidence of our continued progression and a confirmation of our solid footing in one of the world's fastest growing regions."
TOT Money enables mobile payment processing services for more than 390 million mobile users in Russia through strategic direct agreements and integrations with Top 3 mobile operators such as Mobile TeleSystem, MegaFon and VimpelCom, Ltd.
Benefiting from a powerful suite of TOT Money services such as premium SMS, WAP-click, Internet-click, in-app purchases and other direct-carrier billing integration services, mobile phone users are able to use their devices to make mobile payments by debiting their mobile operator account.
Konstantin Zaripov, general director of Net Element Russia, states, "The results we've achieved are a direct result of technology and infrastructure investments made by the Company in this rapidly growing mobile market. The strong foundation we've laid will allow for ongoing, rapid growth as the mobile smartphone market continues to expand in Russia and more consumers use mobile payments as a preferred means to conduct secure transactions."
About Net Element
Net Element (NASDAQ: NETE) is a global technology-driven group specializing in mobile payments and value-added transactional services. The Company owns and operates a global mobile payments and transaction processing provider, TOT Group. TOT Group companies include Unified Payments, recognized by Inc. Magazine as the #1 Fastest Growing Private Company in America in 2012; Aptito, a next generation cloud-based point of sale payments platform; and TOT Money, which has a leading position in Russia and has been ranked as the #1 SMS content provider by Beeline, Russia's second largest telecommunications operator. Together with its subsidiaries, Net Element enables ecommerce and adds value to mobile commerce environments. Its global development centers and high-level business relationships in the United States, Russia and Commonwealth of Independent States strategically position the Company for continued growth. More information is available at www.netelement.com.
About OOO TOT Money
OOO TOT Money, a subsidiary of Net Element, Inc., is a mobile payment processor and mobile commerce provider that facilitates the payment, aggregation and distribution of secure, modern mobile transactions. TOT Money works with Top 3 mobile operators in Russia to service a wide range of clients including wireless carriers, content providers and merchants. Offering the most profitable rates, a broad array of payment options, and a flexible interface, TOT Money is positioned as an industry leader in the growing mobile payments market in Russia.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the 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. These forward-looking statements include, without limitation, whether Net Element or its business continues to grow, whether the recurring subscriber base in TOT Money will be sustained or continue to grow, whether Net Element can secure any additional financing and if such additional financing will be adequate to meet the Company's objectives. 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: (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 and the subsequently filed 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.
SOURCE Net Element, Inc.