Crowdpartners chooses OPP for payment automation and compliance with crowdfunding regulation

Crowdpartners replaced its own third-party money account with OPP. Investor payments are now processed in real time, KYC and anti-money laundering checks are handled, investors’ money is kept separate, and the platform complies with the crowdfunding regulation.

OPP and Crowdpartners partnered to replace the platform’s own third-party money account with real-time, automated payments. OPP processes investor payments as they come in, handles KYC (Know Your Customer) and AML (anti-money laundering) checks, keeps investors’ money separate from Crowdpartners’ own, and carries the licence the crowdfunding regulation requires.

Crowdpartners is a crowdfunding service platform for investors and borrowers. Founded in 2014, it aims to make investing in companies accessible to everyone.

The partnership: from once-a-day manual processing to real time

Before OPP, Crowdpartners handled the payment traffic between users itself, through a third-party money account. When an investor registered for a project and paid, the payment was processed by hand, once a day. The regulation then made the choice for Crowdpartners: comply with PSD2, the EU’s Payment Services Directive, through an exemption or a licence from De Nederlandsche Bank, or engage a payment service provider (PSP) that takes over the payment traffic and the licensing requirement.

“This way of working ultimately had limitations for us. For example, it was not possible to make and process intraday payments this way. When investors registered for a project through the website and made a payment, it was only manually processed once a day through our third-party money account. Time-consuming and inefficient.”

Thomas de With, CEO of Crowdpartners

The challenge: compliance, KYC and AML, and a platform migration at the same time

Working with a PSP was the logical route, but it had to be the right one. Crowdpartners was planning a migration to a new platform, and the payment solution had to connect properly to it. It also wanted to respond better to the growing requirements for KYC and AML checks, and to keep investor funds clearly apart from its own.

“With this, we not only meet the legal requirements, but also benefit from additional advantages. Thanks to OPP, we can now process payments from investors in real time and automatically. Also, with the cooperation, we are better responding to the increasing requirements for KYC and AML. With OPP, this is more intelligently digitised and continuously optimised.”

Thomas de With, CEO of Crowdpartners

Our solution: the best technical fit, with an integration plan and a team nearby

Crowdpartners compared payment service providers in the Netherlands and abroad. OPP’s solution was the best technical fit for the new platform, and OPP drew up an integration plan for the migration. Investors are verified through OPP’s customer onboarding: KYC and AML checks are digitised and continuously optimised, an extra pair of eyes that keeps the community reliable and the platform free of fraudulent use. Balances and cash flows from investors to projects, and repayments and interest back to investors, are kept separate from Crowdpartners’ own money.

“Linking our platform with the payment system is essential in our entire chain as a service provider. That is why it is important to get to know the partner you work with well. Proximity is important then. Also, communication with the team at OPP is easy and very approachable. Partly because of this, the implementation and migration ultimately went well.”

Thomas de With, CEO of Crowdpartners

The impact: new payment options without building them

Instead of developing new payment features itself, Crowdpartners draws on OPP’s expertise. Adding payment options in the Netherlands and abroad has become much easier, which matters for a platform that wants investors across Europe and plans to lend in Germany and Belgium. Crowdpartners and OPP now work together on customer experience, reporting and internal processes.

“Being able to process payments across Europe in real time is another important added value of OPP. We have been able to realise most of the wishes we had. Of course, there is always room for improvement, so we will continue to work with OPP to see how we can innovate even further.”

Thomas de With, CEO of Crowdpartners

What this means for you: why crowdfunding platforms should not run their own payment traffic

If you run a crowdfunding platform on a third-party money account, Crowdpartners’ constraints are probably yours: manual processing, funds that are hard to keep separate, KYC and AML requirements that keep growing, and a regulation that now expects PSD2 compliance.

A licensed payment partner turns that into real-time payments, verified users and separated funds, with the licence sitting where it belongs.

Want to see how OPP could automate the payments on your platform? Get in touch to learn more.

Talk to our team

Frequently asked questions

Does a crowdfunding platform need its own licence to handle investor payments?

A platform that handles investor money itself needs an exemption or a licence from De Nederlandsche Bank, the Dutch central bank. The alternative is a payment service provider that takes over the payment traffic and the licensing requirement. Crowdpartners chose the latter with OPP.

Why move away from a third-party money account?

A third-party money account is a bank account a platform uses to hold money on behalf of its users. Crowdpartners used one to process investor payments, but only by hand, once a day. With OPP, investor payments are processed in real time and automatically, and a licensed provider holds the funds.

Who handles KYC and AML checks for investors?

OPP does, through its onboarding. The checks are digitised and continuously optimised, which helps Crowdpartners keep up with growing requirements and keeps fraudulent users off the platform.

Can a crowdfunding platform switch payment provider while migrating to a new platform?

Crowdpartners did exactly that. OPP drew up an integration plan that fitted the new technical set-up, and close, approachable communication kept the implementation and migration on track.

Can new payment methods be added without building them in-house?

Yes. Crowdpartners draws on OPP to add payment options in the Netherlands and abroad, which supports its plans for investors across Europe and for lending in Germany and Belgium.

Services used

Online payments

Customer onboarding

Virtual IBANs

Instant payouts

Reporting

First-line support

Multi Split