Net Element, Inc. (NETE) Greases the Wheels for an OutstandiNet Element, Inc. (NETE) Greases the Wheels for an Outstanding Year
It was only a few years ago, in October 2012, that Nasdaq-listed Net Element stepped into the public market and aggressively set out to operate a sustainable, revenue-generating business model built on cutting-edge technologies. In 2013-2014 the company divested its non-core assets and turned its focus to mobile and e-commerce, both of them burgeoning markets with favorable economic trends and trajectory for continual growth.
What do these “favorable trends” look like? Net Element is part of the $796 billion global m-payments market, which is expected to achieve annual growth of 58.5% in years to come. Add to that the company’s parallel participation in the $1.79 trillion global e-commerce market, which is expected to gain 18.1% annual growth, and you get a tremendous playing field. The figures are just figures, however, until you add into the equation Net Element’s strategy to capitalize on this market.
The use of non-cash forms of payments, including mobile payments, has steadily increased over the last decade and continues to climb and outpace cash transactions. Taking advantage of this trend, Net Element divided its business into three key segments: mobile payments, value-added services, and payment processing. Within these segments, Net Element works through four brands (TOT Group, Unified Payments, TOT Money and Aptito) and across all payments channels, including mobile, online and offline transactions, to offer services to brick and mortar businesses, the hospitality industry and the broader payments market.
Net Element’s business model has two facets that are well worth noting. The first is that all company revenues are recurring from a strong established customer and partner base, which includes more than 100 independent value-added dealers and agents in the U.S. alone. The second is that the Net Element doesn’t carry all its fruit in one basket; success is not contingent on one customer – in fact, the largest customer/merchant represents only 3% of revenues. On that note, Net Element in November reported Q3 revenues of $6.03 million, debt reduction of $15 million, and a narrowed quarterly loss.
To keep the recurring sales wheel in motion, Net Element continuously greases the wheels of its revenue drivers with the continual expansion of its merchant base, emerging technology roll-outs and strategic portfolio acquisitions. A bit of brand association doesn’t hurt, either. Net Element recently went straight for the heart of the payments industry with an agreement to provide Apple Pay services to its secure mobile-transaction platform. The deal made it possible for merchants with Net Element’s transaction platform to handle and process the increasingly popular Apple Pay.
Maintaining an aggressive pursuit of its share of the mobile and e-commerce markets in 2015 and beyond, Net Element keenly recognizes its position in the market and is working to embolden its key advantages. In its brief history as a publicly traded company, Net Element has demonstrated its ability to introduce innovative products and solutions, employ a successful sales strategy, establish valuable partnerships and take advantage of fast growing markets.
For more information, visit www.netelement.com
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