China’s Tianshan Rural Credit Bank of Xinjiang Autonomous Region (TRCB) is the latest bank in the country to sign up to FinTech Chain’s (ASX: FTC) T-Linx payment service platform.
The deal follows FinTech’s three-month trial at a tourist site within Xinjiang Province which gained local government approval.
Local government approval paves the way for FinTech to test its payment service platform at another 80 tourist attractions within the Xinjiang Autonomous Region.
Under the T-Linx/tourist attraction program, TRCB will pay a RMB30,000 (A$6,288) monthly service fee which is based on transaction history. Fee income will then increase in line with transaction volume and value.
“The above special award program with TRCB provides a strong foundation for the use of FinTech’s T-Linx system in the travel and entertainment industry and demonstrates our active relationship with Rural Credit Bank and its affiliates under our mutual principal agreement signed in Beijing in February 2019,” FinTech chairman and chief executive officer Qiang Xiong said.
T-Linx payment service
FinTech’s T-Linx system interfaces with bank institutions as well as merchants and retailers with T-Linx enabled point of sale devices.
Digitised payments are aggregated through the point of sale terminals and are characterised as everyday shopping outflows including dining, entertainment, travelling, utility bills, medical costs and online shipping.
The set up attracts revenue streaming system fees which are shared by merchants, the banks and FinTech.
According to FinTech, the transaction fee is pre-determined and agreed between FinTech’s merchants and the banks and is based on total transaction volume processed by FinTech’s T-Linx platform.
FinTech also generates revenue via system service fees, technology research and development, non-standard project implementation, commission income and switching fees per transaction.
Expanding throughout China
Today’s deal with TRCB follows last week’s contract with Hunan Xingsha Rural Commercial Bank (XRCB), which is expected to generate FinTech revenue of around 0.02% per transaction.
After a three-month trial, XRCB’s T-Linx utilisation had reached RMB9 million (A$1.8 million) transactions a day.
More than 300 banks are now connected to FinTech’s systems including China Merchant Bank, Ping An Bank and Rural Credit Cooperative Unions.
FinTech plans to continue marketing its T-Linx system across China’s various provinces.
By midday, shares in FinTech were up 8.82% to $0.185.