Net Element enters into MOU with Bank Sputnik to launch technology platform
Net Element announced that it has entered into a memorandum of understanding, or MOU with Bank Sputnik to launch a technology platform expected to provide a suite of payment acceptance services for financial institutions and value-added providers. Bank Sputnik provides a full range of banking services to businesses. The payment processing center would integrate Bank Sputnik's expertise in enabling secure globally interoperable financial transactions with Net Element's expertise in developing value-added payment acceptance services. Per the memorandum of understanding, it is contemplated that Net Element will execute the deployment, launch and servicing of the payment processing center in exchange for 25% of issued and outstanding shares of Bank Sputnik. The bank will provide the capacity for the data center for deployment and subsequent use of software required for the implementation of the program, as well as financial instruments for settlement of transactions and funding required for the development and implementation. This joint venture with Bank Sputnik is subject to approval of the shareholders of Bank Sputnik and the bank's regulators, and the parties' negotiating and entering into a binding definitive agreement.