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
