The owner of the Russian payment system PayOnline and Digital Provider hopes that the new blockchain solutions will return to the stock positive momentum.
The blockchain technology, despite all its untapped potential, has become for many, especially for the financial markets, a new reality. Meanwhile, it seems that the hype that is justified has erected many providers of technology to new heights in recent times will lose its “magic power”. Can the blockchain continue to be a springboard for stocks of software companies in General and payment companies in particular?
American Corporation Net Element specializes in mobile payments and transactional services, and owning a Russian payment system PayOnline and Digital Provider, recently spoke about that in the second quarter of the current 2018, its revenue rose 9% to 32 million dollars. The positive dynamics of growth in the company, whose shares are traded on the NASDAQ site, associated with the start of the decision Netevia Smart Vendor Payment Solutions and preparation for implementation services in the field of blockchain.
The company develops multi-channel electronic payment solutions saw significant growth in its North American business. The total volume of transactions processed through the segment of the North American Transaction Solutions, increased by 37% to 1.62 billion dollars. And the total volume of transactions processed through the International Transaction Solutions segment grew 20% to $ 211 million.
The largest shareholder of the company (16%) and Chairman of the Board of Directors of Net Element, Kenges Rakishev, commented: “Associated revenue growth Net Element, Inc. with the introduction of new services. R&D team continues to develop value-added products to differentiate our offers for small and medium businesses, as well as preparing for the implementation services based on blockchain. We will continue to invest in commercial technology that creates significant value for our shareholders.”
Meanwhile, in fairness, it should be noted that the company’s stock price does not reflect the positive dynamics reported financial results. Last year alone, the company’s capitalization fell by a third (32.5 per cent). At the moment investors are not willing to pay more than 5.4 dollar per share. Moreover, trading volume also does not reflect the special interest of the market to the company, in which I hope that the new payment solution based on the blockchain will still attract investors.