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.