- Finance technology company FinTech Chain (FTC) has signed a contract with the Guangdong Credit Union
- The contract will see FinTech provide its T-Linx services on an “as required” basis
- This means the actual financial benefit of the contract is not yet known
- T-Linx is a payment service able to integrate with a client’s existing networks and devices
- FinTech’s shares saw a slight dip in early trade but recovered to close at a flat 11 cents per share
FinTech Chain (FTC) has landed a new contract with the Guangdong Credit Union for its T-Linx product.
The nature of the contract, according to FinTech, is for Guangdong to make use of FTC’s services on an “as required” basis.
Essentially, this means there will be no minimum fees or expected volume for transactions set out in the contract. As such, the financial impact of the new deal will only be determined over time.
FinTech said the contract is consistent with other FTC service contracts, however, which include a 0.03 per cent service fee revenue on the total value of T-Linx’s transaction volume.
While this may not sound like an overwhelming figure, T-Linx revenues were the only silver lining in FinTech’s half-year report released on Monday.
The T-Linx tech is a payment service able to integrate with a client’s existing networks and devices. The tech can integrate popular Chinese payment methods like WeChat Pay and Alipay, as well as conventional credit and debit cards.
Furthermore, these payment methods each have their own facial recognition hardware system which is becoming an important part of the Chinese payment industry. T-Linx is able to combine all these facial recognition systems into one piece of hardware, meaning merchants safe costs and bench space.
FinTech Chairman and CEO Qiang Xiong said today’s contract is a milestone for the company.
“Since 2019, industrial digitalization is developing rapidly in China. The integration of banking payment services in various vertical industries has provided new opportunities,” Qiang said.
He said these opportunities include “payment-equal-to-service” and “payment-equal-to-deposit” services.
FinTech’s shares saw a slight dip in early trade but recouped the loss by midday to close at a flat 11 cents per share.