Net Element's PayOnline Expands its Suite of Servi

MIAMI, FL--(Marketwired - Apr 26, 2017) - Net Element, Inc. ( NASDAQ : NETE ) ("Net Element" or the "Company"), a global provider of mobile payment technology solutions and value-added transactional services, today announces that its PayOnline subsidiary has introduced a "Instant Credit," a new feature that allows online merchants to sell goods and services on credit. By integrating Instant Credit, merchants will receive the same settlement process inclusive of both bankcard and payables due from consumers. Instant Credit enables the consumer to directly interact with the integrated credit institution for instant access to a loan, creating an incentive for merchants to promote this service to achieve higher conversion rates at checkout. 

According to a recent research, a high number of Russian consumers buy expensive goods and services on credit, though only a small number of online sites provide this payment option. Instead, most sites redirect consumers to a complicated loan application page, which often results in abandoned shopping carts at checkout. PayOnline solves this problem by providing a fully integrated shopping experience, via online and mobile devices, with an instant approval process at checkout. The Instant Credit feature is available as a stand-alone product with no other purchase requirements.

"We expect that using this new method of payment will allow our clients to grow their sales volumes and average ticket size," commented Maria Goryacheva, PayOnline product director. "The solution will be especially useful for the online sale of digital technology and household appliances, travel services, educational institutions, and other enterprises with a high average ticket size. For maximum effect, and to reduce the risk of high-priced items being left in the online shopping cart, it is important to let consumers know they have the option to buy online goods on credit early in the shopping process."

How Instant Credit works: 1. Online merchant places a "Buy on Credit" button on the item page and in the "basket" 2. Consumers choose "Buy on Credit" as a type of payment 3. The consumer is redirected to a form to obtain credit from a Micro Finance Company ("MFC") 4. MFC issues a credit response in 10 seconds or less 5. Upon credit approval, the payment is processed. Technically it's similar to payment by a bankcard 6. Funds flow to online shopping bank account according to the terms fixed in the contract 7. Consumers pays out credit to MFC

This new payment instrument is available online or through mobile app to all merchants registered as legal entities and in compliance with The Russian Federation's legislations. PayOnline's clients can begin offering Instant Credit within one business day by simply notifying their relationship manager and integrating the "Buy on Credit" button to their website. For additional payment services, such as bankcard, e-wallets, MasterPass and Apple Pay, clients will complete a standard agreement with PayOnline and undergo technical integration.

About Net Element Net Element, Inc. ( NASDAQ : NETE ) operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise ("SME") in the US and selected emerging markets. In the US it aims to grow transactional revenue by innovating SME productivity services such as its cloud based, restaurant and retail point-of-sale solution Aptito. Internationally, Net Element's strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions such as UAE, Kazakhstan, Kyrgyzstan and Azerbaijan where initiatives have been recently launched. Net Element was named in 2016 by South Florida Business Journal as one of the fastest growing technology companies. Further information is available at www.netelement.com .

Forward-Looking Statements 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. 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 whether the introduction of the Instant Credit application will positively impact the Company. Additional examples of such risks and uncertainties are: (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, 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.