Chastened Neteller seeks new markets

Neteller describes itself as the biggest, independent, online money transfer business in the world, processing US$7billion annually for a million customers in 160 countries. The firm, headquartered on the Isle of Man, is repositioning itself after falling foul of numerous US laws.

Neteller offers an e-wallet, or online account, available in six currencies. Customers are able to link the account to a debit card for ATM and point of sale transactions.

The firm's payment service was the favoured choice of online gamblers, before the US Attorney General acted to arrest the company's founders in January, and force the company to withdraw from the US market.

Stephen Lawrence and John Lefebvre were charged over what the US attorney general said was "the creation and operation of an internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds from US citizens to the owners of various internet gambling companies located overseas".

The pair were not charged with money laundering offences, but under an old statute prohibiting the international transfer of proceeds of gambling.

Neteller is now in the process of refunding US$94 million to hundreds of thousands of US customers who all had their accounts frozen for six months earlier this year.

The same company also operate Netbanx, a payments gateway with an increasing online presence in Britain and Europe.

Neteller says it wants to increase its presence in the Asia Pacific region as well as the non-US Americas.

Neteller shares, listed on London's AIM exchange, have crashed over the last two years from a trading range of seven to eight pounds to 50 pence earlier this year and 70p on Friday.

Centricom's Simon Warner said Neteller is "still cashed up and looking for opportunities in this region as it withdraws from the US."