Crowdestor secures funds to acquire payments firm

European peer-to-peer lender Crowdestor has attracted funds needed to acquire a licensed payments services provider that will help the platform comply with incoming European Union regulations.

The Estonia-based lender launched a €1m (£90,000) loan project through its own business lending platform that will help it acquire a payments institution based in the Czech Republic.

The move will make it easier for the platform to segregate investor funds from its own.

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“This requirement is already in the draft regulation on European crowdfunding service providers and we want to be ready for when the regulation comes into force,” Crowdestor said in a blog on its website.

“Investors will open an account with Crowdestor Pay, which through API will be able to send money back and forth to make investments and receive the interest and principal repayments on their segregated account.

“Crowdestor Pay will also be used by borrowers.

“This will create an ecosystem, where payments between borrowers and investors will be transferred without the involvement of the Crowdestor platform.”

The platform said the deal will allow it to create fast transfers, cashback, bonuses and loyalty programmes.

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