Financing led by company's co-founders to support growth of disruptive payments acceptance model
DOVER, DE, Aug. 24, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Payment Club, Inc. ("Payment Club" or the "Company"), a subscription-based payment service provider that offers payment processing and value-added point-of-sale ("POS") services to merchants through simple membership pricing plans, today announced that it has completed a $7 million financing led by its co-founders in partnership with Unified Payments, subsidiary of Net Element (NASDAQ: NETE) and its institutional investor.
The financing was led by Payment Club's co-founders with $2 million in equity. As part of Unified Payments' "Team Unified" partnership program and Unified Prosperity Financing program, Unified Payments through its partnership with its institutional investor arranged a $5 million credit facility for Payments Club to fuel its growth initiatives, bringing total debt and equity financing to $7 million.
Since its launch in late 2017, Payment Club has focused on building a transparent payment acceptance model to support small and medium size businesses in the United States. This disruptive model is built on the foundation laid by Payment Club co-founders Anthony Kutscher and Alex Ilinski, who have over 20 years of experience in the payments industry and who wanted to address the frustration of merchants being serviced by merchant services sales agents who lack knowledge of popular emerging payment technologies.
"Having witnessed our model deliver exceptional outcomes and drive demand, we knew we needed to partner with the reliable technology provider and raise capital to reach more clients faster," commented Alex Ilinski, VP and co-founder of Payment Club.
According to the Subscription Economy Index 2017, Zuora; Eurostat; MEC+ analysis, the subscription business model has grown exponentially in recent years. Globally, the total number of companies offering a service based on subscription is estimated to be around 28,000. In the past five years, revenue growth for subscription companies has outstripped that of the retail indices of the Nordics and global S&P 500 sales index.
"Utilizing a transparent subscription-based pricing model combined with the latest technology solutions, Payment Club can provide positive options to frustrated merchants and streamline their payment processes," commented Anthony Kutscher, President and co-founder of Payment Club.
The Company will use the funding to expand nationwide and hire up to 100 Payment Club membership advisors as well as create show rooms where business owners can come in and experience the products and get information on the variety of memberships the Company plans to offer.
"Payment Club is an exceptional company that is revolutionizing the way merchants pay for accepting cashless transactions, and we look forward to a long term partnership with the Payment Club team as they grow the business," commented Vlad Sadovskiy, president of integrated payments for Net Element.
About Payment Club
Payment Club is a subscription-based payments provider offering variety of membership plans for value added services, POS and flat fee payment acceptance with transparent, zero markup pricing. For more information about Payment Club visit www.paymentclub.com.
About Net Element
Net Element, Inc. (NASDAQ: NETE) operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise ("SME") in the U.S. and selected emerging markets. In the U.S., the Company aims to grow transactional revenue by innovating SME productivity services using blockchain technology solutions and Aptito, our cloud-based, restaurant and retail point-of-sale solution. Internationally, Net Element's strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions. Net Element was ranked as one of the fastest growing companies in North America on Deloitte's 2017 Technology Fast 500™. In 2017 the Company was recognized by South Florida Business Journal as one of 2016's fastest-growing technology companies. Further information is available at www.NetElement.com.
Source: PaymentClub Inc.
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