Dear Fellow Shareholders,
The dynamic payments industry continued to evolve in 2019, global non-cash transactions and digital payment alternatives continued its leadership position over cash. For us, 2019 was a year of continued organic growth in all business segments while we expanded our portfolio of software-as-a-service (SaaS) offerings focused on value-added payments solutions for small to medium size businesses and regional banks catering to financial technology companies. Our full stack of proprietary payment platforms and value-added services differentiate us from competitors and positions us as a leading omni-channel payments acceptance solutions provider going into this new year. We are pleased to report our achievements for 2019 and look forward to continued growth in 2020.
- Unified Payments was among the first companies to achieve self-regulatory certification from the Electronic Transactions Association.
- Launched multi-channel blockchain-powered payments application across multiple touch points including face-to-face via smart payment terminals and electronic commerce as well as via API.
- Launched Netevia In-App Payments Software Development Kit (SDK) for Internet of Things (“IoT”) devices, enabling application developers and hardware manufacturers to process payments within their consumer-facing applications.
- Launched Blade, our proprietary, fully-automated, artificial intelligence (“AI”)-powered underwriting solution with predictive scoring.
- Launched cryptocurrency payment acceptance for Aptito’s suite of POS solutions.
- Launched Netevia Mastercard®, an exclusively-tailored business card for Unified Payments merchants.
- Launched Netevia Rewards, a card-linked loyalty rewards program.
- Launched merchant acquiring enablement services for small and regional banks in the US.
- Launched the Aptito global kiosk, multi-restaurant self-ordering kiosk solution for the online food delivery industry.
- Achieved organic growth across all categories.
- Total transaction dollars processed during 2019 increased 12% to more than $3.7 billion compared to $3.3 billion in 2018.
- Total transaction dollars processed geographically in North American and international markets in 2019 were $3.2 billion and $425 million, respectively.
- North American segment transactions processed for 2019 increased 19% to more than 70 million, while international segment transactions processed for 2019 decreased 12% to more than 36 million, due to consolidation and a shift in the business model.
- Aptito subsidiary entered into a channel partner agreement with HP Inc. for sales and support of its line of Android-based POS devices.
- Unified Payments partnered with VIP Systems, enabling the Internet of Things (“IoT”) payments for the property management industry. This partnership gained traction with the addition of Hyde Beach House, a modern waterfront beach resort in Hollywood consisting of 342 units, as a client for Net Element’s fully integrated payment ecosystem, Netevia.
Moving forward, exciting projects and disruptive technologies like blockchain and Internet of Things (“IoT”) will continue to provide us the opportunity for continued development of innovative payments solutions within the omni-channel payments strategy. We remain focused on reaching sustainable profitability for the Company, and expanding and monetizing value-added services around Netevia, our future-ready multi-channel payments platform.
As a significant shareholder and investor in Net Element, I am disappointed by the performance of our stock, which unfortunately does not reflect our business performance. We remain committed to maximizing value for our shareholders and will look for strategic opportunities to fulfill this mission.
On behalf of our entire team, I want to personally thank all of you for your continued support.
Chief Executive Officer
Net Element, Inc.