Net Element, a Florida-based mobile payment platform, has announced its acquisition of PayOnline, a payment technology firm that has millions of customers in Russia and Asia.
The deal is expected to be valued at $8.4m, but PayOnline won’t receive all the money straight away. The transaction processing services company has received $3.6m in cash, as well as gaining the same amount in stocks. There will be a further $1.282m pay-out if PayOnline meets certain performance targets.
With this acquisition, Net Element plans to integrate PayOnline’s payments platform into its existing global ‘payments-as-a-service’ network to expand its transaction processing offerings.
Owned by TOT group, Net Element has added PayOnline to its growing collection of mobile payment companies. This group also contains Aptio, who provide transaction processing services via a cloud-based, point of sale payments platform.
The firm also operate TOT Money, one of the largest mobile payment companies in Russia, a region where NetElement are keen to focus on. PayOnline’s merchants process transactions for 10 million active Russian, Asian and European consumers.
The McKinsey Global Payments Map, states that Russia is the world’s 6th largest payments market, accounting for $50bn in payments with a rapidly growing online population. Card issuance is growing at 30 per cent annually.
With this new acquisition, PayOnline’s thousands of merchants will be able to transact in the U.S. while Net Element’s U.S. merchants will have an ability to transact in Asia, Europe and Russia.
‘‘PayOnline and Net Element’s assets are highly complementary and we can now leverage them to grow revenues by attracting more merchants and consumers to our omni-channel payments platform. Well-deserved congratulations to all involved in bringing this transaction to a successful signing,’’ commented Oleg Firer, CEO of NetElement.
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