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.”