Financial technology provider FinTech Chain (ASX: FTC) has signed what it claims to be its “most significant” service agreement to date courtesy of a commercial deal with Singapore-based Zipper Foundation.
Under the terms of the agreement, FinTech Chain will provide a full-range blockchain technology consultancy, development and technical services to Zipper Foundation including developing digital tokens, payments systems and creating electronic authentication services for financial transactions carried out by its users.
The agreed deal has been given a 12-month de-facto trial period after which both companies plan to evaluate future co-operation.
FinTech Chain said that it will generate a substantial amount of income from the deal in the form of a service fee amounting to RMB20 million (A$4.2 million) – the largest fee earning contract it has negotiated in its short operating history.
The Hong Kong-based company was originally set up back in 2011 and achieved several milestones in its first year including launching an Android app, establishing ties with the Industrial and Commercial Bank of China (ICBC) and listing on the ASX as TTG Mobile Coupon Services a year later in 2012.
The company has created a wide range of solutions for companies looking to conduct online transactions and digitising their businesses in the process. One of its prime services relates to upgrading payment transaction clearing systems, including installing its patented T-Linx system for integrated payments.
Currently, more than 300 banks are connected to FinTech Chain’s systems including China Merchant Bank and Ping An Bank. The number of daily transactions processed by its systems exceeds 1 million and growing rapidly on the back of its range of products including Payment T+, Clearing F.E.A, Cloud T-Linx, as well as various hardware products.
Its business income includes client system service fees, technology research and development fees, commission income and transaction switching fee income relating to each payment transaction.
“Confirmation of our agreement with Zipper means our business in the blockchain sector has officially commenced in earnest. This expansion and recognition of our overall blockchain technology services and solutions reinforce FTC’s market position in the fintech industry and our long-term strategy,” said Mr John Xiong, chairman and CEO of FinTech Chain.