Net Element (NASDAQ: NETE) management believes that cash transactions are becoming progressively obsolete. The company is in the digital transaction business, with its North American transactions revenue growing to $42.1 million in calendar 2016, up 54% from 2015. Interestingly, for consumer transactions, where restaurants and educational services dominated in 2015, health and beauty was the fastest growing segment last year — accounting for almost 20% of that total business.
Net Element is a global financial services company focusing on processing electronic payments in an omni-channel environment. It has three segments: North American Transaction Solutions, Mobile Payment Solutions, and Online Payment Solutions. In 2016, the North American segment contributed 78% of total corporate revenue of $54.3 million, or ten points higher than in 2015. The company processed $1.6 billion in transactions in this segment in 2016, a 60% increase over its 2015 revenues.
While 48% of Net Element’s processing in North America in 2015 came from restaurants, as its sales team emphasized its Aptito high-technology product line, that figure dropped to 37% last year. In its place was a surge in health and beauty establishment processing. It grew to 19.9% in 2016 from 7.1% in 2015. General merchandise also grew, delivering greater than 15% of all transactions processed last year. Conversely, educational services fell to just 4.4% from 15.9% in 2015.
Net Element has a lot of growth potential in U.S. processing in the health and beauty category. The hair care industry in the U.S. has some 86,000 establishments, including 82,000 beauty salons and 4,000 barber shops, according to a research study titled ‘Beauty Salon Business Overview and Trends, 2014’ (http://nnw.fm/88zsJ). It’s a growing business; revenue is seen reaching $58.7 billion by 2019. Due to the appeal of higher profit margins, industry operators are seen increasing to 1.3 million by 2019. It also sees higher enrollments at cosmetology schools.
For more information, visit www.NetElement.com
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