Fintech
Peak Signs Agreement with China UnionPay Subsidiary to Implement Payment Processing and Fund Transfer Services to Cubeler Lending Hub Ecosystem
Montreal, Quebec–(Newsfile Corp. – January 18, 2021) – Peak Fintech Group Inc. (CSE: PKK) (OTCQX: PKKFF) (“Peak” or the “Company”), an innovative Fintech service provider to the Chinese commercial lending sector, today announced that it has signed an agreement with China UnionPay subsidiary, Rongbang Technology Ltd. (“Rongbang”), that will give the Company the ability to process payments, settle transactions and transfer funds between lending institutions, banks and the businesses that are part of its Lending Hub ecosystem.
Highlights:
- Peak becomes a transaction aggregator partner for Rongbang and will now be able to control the flow of funds within the Lending Hub ecosystem from start to finish.
- Peak’s clients will have virtual bank accounts within the Lending Hub ecosystem where they can hold cash balances and pay for products and services.
- Peak will have the ability to debit and credit its clients’ real bank accounts held outside of Lending Hub, as well as offer new value-added services, such as escrow services.
- Any transaction involving the movement of funds will earn Peak a service fee, potentially doubling current transaction fees, earning new fees on loan disbursements and every loan repayment transaction.
- Peak will earn a 1.5% to 3.0% annual fee on the aggregate value of the funds held in its clients’ virtual bank accounts.
- First transactions expected to be processed in Q2 2021.
Rongbang (https://www.masget.com/) provides technology specifically designed to optimize the efficiency of the flow of capital between financial institutions, consumers and businesses operating in a variety of industries. Its “UnionPay Supply Chain Integrated Service Platform”, developed in collaboration with China UnionPay (http://www.unionpayintl.com/en/), is used by some of the country’s most popular B2B and B2C e-commerce marketplace operators. UnionPay is a State-owned entity and China’s largest POS electronic funds transfer network. It’s also the only interbank network in China that links all the automatic teller machines (ATMs) of all banks throughout the country. According to Wikipedia, UnionPay is the largest card payment organization (debit and credit cards combined) in the world, ahead of Visa and Mastercard. With today’s announced agreement, Peak will have control over the settlement and the transfer of funds of all transactions facilitated by its Lending Hub and Gold River platforms through direct API links to the UnionPay network.
“We are committed to the secure and efficient flow of funds throughout the country, which we believe is essential to the health of the economy,” said Gang Sun, Director of Business Development at Rongbang. “We know that small businesses, particularly those in the supply chain, play a critical role in the circulation of funds. So when we learned about what Peak was doing with the Lending Hub, we knew that this was something that we wanted to support as we believe Peak’s interests and our interests are perfectly aligned in that regard. We look forward to working with Peak to promote our respective service offerings for the mutual benefit of both of our organizations,” concluded Mr. Sun.
“The services associated with this agreement, once fully implemented, will touch every transaction conducted throughout the Lending Hub ecosystem,” commented Peak China CEO Liang Qiu. “This means that any platform activity that implies the movement of funds, whether it’s financing to help one of consumer electronics distributor BDC’s 60,000 online retail clients, one of packaged foods distributor BJM’s more than 250,000 retail clients or one of the 55,000+ social media influencers affiliated with the Company, will result in Peak earning a transaction fee. Our ability to control the flow of funds was one of the last remaining pieces of the puzzle to the ecosystem we envisioned when we first launched the Lending Hub back in 2018. We still have some work ahead of us before the services are implemented, but we’ve already had our first working sessions with Rongbang’s service implementation team and expect to process the first transactions at some point in the second quarter of 2021.”
Similar to models used by large e-commerce marketplace operators, Peak will have a master bank account under which virtual “bank” accounts will be created for every Lending Hub and Gold River client. The proceeds of the loans and credit for which the clients qualify will first transition through their virtual bank accounts that will operate like PayPal accounts where they will have the ability to hold cash balances and pay for products and services, all within the Lending Hub ecosystem. Peak will also have the ability to debit and credit its clients’ real bank accounts held outside of the Lending Hub ecosystem.
“This is without a doubt one of the most important agreements in the Company’s history,” commented Peak CEO Johnson Joseph. “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. By being an authorized reseller of those services, we will now be entitled to 50% of those fees for transactions facilitated by Lending Hub. This means that in addition to the standard service fees we collect for Lending Hub’s core services when loans are disbursed, we’ll now also be collecting fees on every loan repayment transaction. We’ll also be earning a fee amounting to an annual rate of 1.5% to 3.0%, calculated and paid daily, on the aggregate value of the funds held in our clients’ virtual bank accounts. The combination of these new service fees has the potential to see us earn the equivalent of twice what we currently earn on every transaction conducted on the Hub. That alone speaks to the importance of this new relationship for the Company, but that’s just part of the story. Our ability to control the timing of when accounts are credited and debited puts us in position to offer a number of value-added services, such as escrow services, for which demand is particularly high among supply-chain clients where having the ability to inspect goods prior to funds being released, or ensuring that payment has been made prior to goods being shipped, can be extremely valuable. Once again, I can’t say enough about our executive team in China, led by Liang Qiu, for what they have accomplished with this agreement. Today is a truly memorable day for all Peak stakeholders.”
Wall Street Reporter’s NEXT SUPER STOCK Livestream – January 21, 2021
Peak will be a featured presenter at Wall Street Reporter’s NEXT SUPER STOCK livestream conference on Thursday, January 21, 2021 at 12:30pm EST. CEO Johnson Joseph will discuss the impact of today’s announced agreement on the Company’s operations going forward and will answer investor audience questions. Those interested can click the following link to register and join the livestream: Next Super Stock Livestream Registration
About Peak Fintech Group Inc.:
Peak Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) subsidiaries operating in China’s commercial lending industry. Peak’s subsidiaries use technology, analytics and artificial intelligence to create an ecosystem of lenders, borrowers and other participants in China’s commercial lending space where lending operations are conducted rapidly, safely, efficiently and with the utmost transparency. For more information: http://www.peakfintechgroup.com
For more information, please contact:
CHF Capital Markets
Cathy Hume, CEO
416-868-1079 ext.: 251
[email protected]
Peak Fintech Group Inc.
Johnson Joseph, President and CEO
514-340-7775 ext.: 501
[email protected]
Twitter: @peakfintech
Facebook: @peakfintech
LinkedIn: Peak Fintech
YouTube: Peak Fintech
Forward-Looking Statements / Information:
This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth, using words including “anticipate”, “believe”, “could”, “expect”, “intend”, “may”, “plan”, “potential”, “project”, “seek”, “should”, “will”, “would” and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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