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Net Element International (NASDAQ: NETE), a technology-driven group specializing in electronic commerce and mobile payment processing is pleased to announce today that they have entered into a binding term sheet to acquire
Quickpay, a proprietary payment terminal network that provides consumers with a convenient way to pay for goods or services, and operate it through TOT Group (“TOT”), Net Element International’s mobile payments and transaction processing holding company. This proposed acquisition is expected to give TOT access to cash-based economies through an interface easily localized to fit the lifestyle and language of target markets.
Quickpay Multinational Payment Terminal (Photo: Business Wire)
TOT is a multinational mobile payments and transaction processing company that provides a range of groundbreaking online and offline payment solutions. TOT’s mission is to be an innovative provider of revenue enhancing payment solutions. Clients include wireless carriers, content providers and merchants. TOT delivers end-to-end payment solutions that enable merchants to reliably accept cashless transactions at the point of sale (POS). From processing of electronic payments at the POS to mobile commerce transactions to managing merchant terminals and providing information management services, TOT offers innovative solutions that allow merchants to streamline their payments resources.
Quickpay is an alternative pathway in the backbone of the global payment ecosystem. It targets participants in the cash-based economy worldwide, allowing buyers to pay for their goods and services via cash remittances made at terminals, similar in look and feel to ATMs, without the need for plastic cards or bank accounts. Payments can also be made on the Quickpay network via WAP, Web, and SMS Terminals – or via XML protocols that integrate external payment systems. Those goods and services run the gamut, from home utility bills to cell phone tariffs and cash transfers. Quickpay’s proprietary technology platform is highly secure and customizable: it provides an intuitive interface easily localized to fit the literacy, language and customs of the target markets. McKinsey & Company described the market for consumer bill payments as follows: “Consumer bill payment is a large and potentially attractive market for payments providers. Globally, consumers pay 75 billion to 100 billion bills annually, generating $25 billion to $30 billion in payments revenue, often at healthy operating margins of more than 25 percent” in its 2010 report
Consumer bill payment: Learning from global archetypes.
“Russia is just one of many regions that represent a clear opportunity as it alone has over 4 billion transactions annually with 80 percent of that volume comprised of walk-in payment channels,” said Oleg Firer, CEO of Net Element. “In many Eastern European markets, banks and post offices are where approximately two-thirds of these transactions take place requiring the completion of forms and often resulting in long lines.”