MOSCOW, RUSSIA--(Marketwired - Dec 17, 2015) - Net Element, Inc. (
Russia issued its first electronic payment cards on December 15, 2015, aiming to boost its financial independence and compete with international payment systems such as Visa® and MasterCard®. Russian National Payment Card System -- branded Mir, which means "peace" or "world" in Russian -- gained momentum after Russia's parliament passed a law to create a National Payment Card System. The Russian government has allocated 4.5 billion rubles ($64.2 million) to issue Mir cards, which look similar to international bank cards and feature the Mir logo in the left corner.
According to Russian Federation's "Federal Law 112," banks which are regarded by the central bank as having critical importance to the national financial infrastructure as well as banks which offer payment acquiring services to merchants will be obligated to issue and accept payments for goods and services utilizing Mir card scheme. This will likely lead to mass adaptation of the new payment card.
With first cards being issued in December 2015, full commercial rollout is expected to take place in 2016 and it is anticipated that the card will become a major player in the Russian market on par with Visa and MasterCard. The central bank plans to promote the card among state employees in 2016, and further into the future make it a globally accepted method of payment.
PayOnline plans to utilize its direct partnerships with the acquiring banks outside of the Russian Federation in order to promote Russian National Payment Card System acceptance scheme as well as utilize PayOnline's payment acceptance platform to process Mir cards within the Russian Federation.
"Undoubtedly, the potential for the National Payment System is tremendous, taking into account constantly growing market and government initiatives to stimulate electronic forms of payment," commented Marat Abasaliev, CEO of PayOnline. "PayOnline which accounts for 30% of the IPSP market is prepared to play a key role in the process and incorporate best practices from around the world in order to support successful roll out."
"With central bank promoting Mir card to state employees and PayOnline having a significant share of online payments market in Russia, we believe that PayOnline will benefit from increased transactions and card usage in the market, ultimately resulting in increased revenue opportunities for the Company in the upcoming years," commented Oleg Firer, CEO of Net Element.
About PayOnline PayOnline provides flexible high-tech payment solutions to companies doing business on the Internet. They have wide experience in integration and customization of payment solutions for websites and mobile apps. They are able to arrange payments on the website of any commercial organization that increases convenience with highest possible level of successful transactions. Thousands of companies in CIS, Europe and Asia use PayOnline to accept payments online. PayOnline offices are located in Russia and in the Republic of Cyprus. For more information, please visit: www.payonline.ru/en or www.payonline.ru .
About Net Element
Net Element, Inc. (
Forward-Looking Statements 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 the perspectives expressed by Mr. Abasaliev have any merit, whether PayOnline will be successful in utilizing its partnerships with acquiring banks outside of the Russian Federation to promote the Russian National Payment Card System acceptance scheme, whether PayOnline will play a key role in the process of rolling out Mir cards within the Russian Federation or whether PayOnline or the Company will benefit in any manner from this new card acceptance system. Additional forward-looking statements include 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.
Contact: Net Element, Inc. media@netelement.com +1 (786) 923-0502
