Net Element, Inc. (NASDAQ: NETE) is growing its sales in the quick-expanding world of cashless transaction processing, which is exhibiting its greatest gains in retail and in the emerging Asian and Latin American markets, according to the World Payments Report 2016 (http://nnw.fm/MY0tu) by Capgemini. Net Element itself showed a 35% revenue increase in FY2016 to $54.3 million versus the same period in 2015. SeeThruEquity (http://nnw.fm/W3Dpi) projects the company’s sales at $62.9 million in FY2017. Zacks Small Cap Research (http://nnw.fm/R3FcB) estimates Net Element’s 2017 sales at $62 million and for 2018 at $73.5 million.
Net Element is a financial technology group that processes global electronic transactions within an omni-channel environment. It processes transactions from mobile devices, points-of-sale and within e-commerce. The company’s performance is segmented into several groups, with the North American segment being its largest by far. In 2016, Net Element recorded a 54% jump in North American revenues to $42.1 million, representing about 78% of total company sales.
The encouraging news for Net Element is that, while North America today dominates the company’s revenues, other parts of the world are showing significant percentage growth in number of electronic transactions. The company’s future worldwide is in a quick-expanding marketplace in what is becoming a global cashless society.
In 2015, Net Element saw 21.6% growth in Bankcard regional volume in emerging markets within Asia and 8.6% growth in Latin America, according to the research report World Payments Report 2016 by Capgemini. It said 387 billion transactions occurred worldwide in 2014 and projected a 10% increase in 2015. In China, an increase of 47% was seen in 2014, it said. North America, while still growing, had the least level of gains at 4.6% in 2015, the research study found.
Compound annual growth rate, or CAGR, from 2010-2014 for the emerging Asia-Pacific market topped the global report at 23.6%, while mature markets in Asia-Pacific jumped 11.1% and Latin America grew 10.6%. North America CAGR for the period grew only 4.7%, it said. China’s growth in non-cash payments grew from 2013-2014 by 31.5%, easily topping all others. By comparison, North America grew in the same period by 4.4%.
The mix of non-cash payments from 2010-2014 also bodes well for Net Element, with 65% of all non-cash payments worldwide made on credit cards, the research found, and the rest breaking down to 12% on direct debit credit cards, 17% on credit transfers and 6% made on checks. In North America, the use of credit cards in this mix was even higher at 70.7% in 2014. North America was ranked first in total transactions by value — at $139.8 billion in 2014 — making it the highest globally in non-cash transactions.
So while Net Element enjoys its 87% of revenue from North America, its future as it processes non-cash transactions overseas is bright. Globally, non-cash transaction processing is growing quickest in the Asia-Pacific emerging markets sector.
For more information, refer to www.NetElement.com
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