- Peak Fintech Group (PKK) has signed a tech transfer agreement with Rongbang Technology, a subsidiary of China UnionPay
- The agreement will allow Peak to control the flow of funds within its Lending Hub ecosystem, from beginning to end
- After integration, Peak Fintech will earn a service fee on any transaction involving the movement of funds within the Hub
- The companies expect to process the first transactions sometime during 2021’s second quarter
- Peak Fintech Group is up 10.64 per cent, and is currently trading for $2.08 per share
Peak Fintech Group (PKK) has signed a tech transfer agreement with Rongbang Technology, a subsidiary of China UnionPay.
Rongbang’s technology is designed to optimise the efficiency of capital flow between financial institutions, consumers, and businesses. Through the agreement, Peak Fintech will become a transaction aggregator partner for Rongbang.
As a result, the company will be able to process payments, settle transactions, and transfer funds between lending institutions, banks, and the businesses within its Lending Hub ecosystem. In short, Peak will be able to completely control the flow of funds within the Hub, from beginning to end.
After integration, the company will earn a service fee of any transaction involving the movement of funds within the Hub. The combination of new service fees could potentially see Peak Fintech earning the equivalent of twice what it currently earns on every transaction conducted on the Hub.
The company’s clients will also have virtual bank accounts within the Hub where they can store cash balances and pay for products and services.
Peak Fintech’s CEO, Johnson Joseph, called the arrangement one of the most important agreements in the company’s history.
“Our Lending Hub has essentially become a transaction aggregator partner for Rongbang, which earns transactional service fees from financial institutions to transfer funds to and from their systems,” he said.
“By being an authorised reseller of those services, we will now be entitled to 50 per cent of those fees for transactions facilitated by Lending Hub,” he added.
Peak Fintech is working towards implementing the services into the Hub, and has already had its first working sessions with Rongbang’s service implementation team. The company expects to process the first transactions sometime in 2021’s second quarter.
Peak Fintech Group is up 10.64 per cent and trading for $2.08 per share, as of 2:54pm EST.