MIAMI & MOSCOW--(BUSINESS WIRE)--Net Element (OTCQB: NETE), a global technology and publishing company that operates in mobile commerce and payment processing, and also publishes popular entertainment portals and destinations, and MegaFon OJSC, Russia’s second-largest mobile phone operator, today announced their partnership to provide payment processing services to MegaFon’s 64 million subscribers. The agreement calls for MegaFon to enable Net Element’s mobile payment platform, to facilitate the mobile payments for MegaFon subscribers. In the first two weeks after the September 1 start date, Net Element already processed about 35 million rubles (approximately $1.1 million) for MegaFon customers.
Net Element is expected to become a leading value-added services provider for the $1.5 billion Russian SMS payments market and the $475 million Russian mobile commerce market. The market’s growth is being driven by Russia’s booming mobile marketplace with more than 227 million active SIM cards.
Net Element and MegaFon announced their payment processing partnership several months after they teamed up to launch Net Element ‘s Motorsport.com and Komissionka mobile phone apps in the Russian marketplace. The apps were pre-loaded on smartphones under MegaFon’s brand, marketed to MegaFon’s 64 million subscribers.
“We have enjoyed great success working with Net Element, and we are very pleased to continue to expand our business relationships with Net Element and announce our partnership for payment processing, which is the largest mobile-related contract in MegaFon’s history,” said Oleg Butenko, MegaLabs CEO.
Added Dmitry Kozko, Net Element’s executive vice president: “Net Element is proud of our success in the Russian marketplace where large-scale distribution reach is critical, and we are excited to expand our partnership with MegaLabs, which more strategically positions our company in one of the world’s most rapidly growing economies. Our partnership with MegaFon and key relationships with the ‘Big Three’ mobile operators will help Net Element become the leader in Russia’s mobile commerce boom.”
About Megafon OJSC
MegaFon OJSC is a universal operator working in all the segments of the telecommunications market. The company is actively fighting mobile fraud and works to raise mobile literacy in the population. More than 62 million people throughout Russia have chosen the high quality of services and communications provided by MegaFon. Appreciating the trust of its customers, the company has become the only mobile operator to adopt more customer-oriented policies. MegaFon is the first and only mobile operator to expand its network throughout the Russian Federation, as well as the first in the country to launch 3G for commercial operations. An active supporter of sports, MegaFon is the General partner of the XXII Olympic Winter Games 2014 and XI Paralympic Winter Games 2014 in Sochi, and the General partner and official mobile operator of the XXVII World Summer Universiade 2013 in Kazan.
MegaLabs is a wholly owned subsidiary of MegaFon, and its principal objective is to research, develop and bring to market innovative value-added services for MegaFon clients. MegaLabs is a centre for innovative developments and quick-to-market launch of value-added services in the areas of content and media, mobile finance, mobile advertising, M2M services and cloudservices.
About Net Element (OTCQB:NETE)
Net Element (OTCQB:NETE) is a global technology and publishing company that operates in mobile commerce and payment processing, as well as publishes popular Internet portals and destinations. Its international development centers and influential relationships in Russia and Commonwealth Independent States strategically position the company for growth in Russia and other emerging markets. Net Element owns and operates a mobile-commerce company, TOT Money, as well as several Internet properties that create social and business communities in the entertainment, music, motorsports and film industries. Net Element’s portfolio includes: www.TOTmoney.ru; www.Motorsport.com; www.Openfilm.com; and www.Music1.ru; www.ARLive.com and www.Yapik.com. For more information, visit www.NetElement.com.