Identify all your crowdfunding payment flows
Every day, numerous financial flows pass through a crowdfunding platform. Identifying them means ensuring their control :
- Collections, i.e. the collection of payments from contributors ;
- Transfers of funds to project leaders, which can only be made once the financing objective has been reached and management and transaction fees have been collected ;
- Management and transaction fees associated with the crowdfunding platform, which may take the form of commissions and/or fees from the payment provider ;
- Refunds to contributors, which may be necessary in the event that campaigns do not reach their goal or if incidents occur during the implementation of projects.
Comply with current regulations
Each crowdfunding platform is required to establish certain mandatory and standardized protocols in order to secure all of its crowdfunding payment flows :
- Procedures for verifying projects and contributors before starting any crowdfunding campaigns (KYC / KYB) ;
- Rules specific to the conditions for fundraising on the crowdfunding platform (duration of the campaign, minimum and maximum funding amount, reimbursement terms, etc.) ;
- Protocols for managing payments, refunds or any other flow ;
- Summary of management and transaction fees associated with the platform, their calculation and collection method.
Anticipate to limit risks
Every investment carries its share of risks. And crowdfunding is no exception. To ensure the protection of contributors and the preservation of the platform’s interests, certain measures can be taken, including taking out insurance to cover potential financial risks related to incidents and/or disputes, a transparent communication policy aimed at informing contributors of the risks of crowdfunding, and the establishment of protective measures for project leaders (separate payment accounts, for example).
Invest in strong relationships with your users
The success of a crowdfunding platform depends on the number and quality of projects it supports. This requires building strong relationships with project leaders and investors, based on listening, discussion, and support.
Various transaction-related issues may require assistance and must therefore be handled quickly and professionally (resolving technical issues, providing information/instructions on crowdfunding payments, preventing fraud, etc.). Ultimately, providing quality support improves the platform’s user experience, contributes to stakeholder loyalty and engagement, with a specific objective: increasing the volume of crowdfunding investment.
Surround yourself with a reliable payment partner
Only platforms that have obtained PSFP (Private Financing Service Provider) approval from the AMF may provide crowdfunding services. Obtaining this valuable certification requires first obtaining PSP (Payment Service Provider) approval. To do this, applicants have two options :
- Be registered as a Payment Service Provider with the ACPR (long and complex process)
- Use an approved establishment which grants it the right to integrate and distribute regulated payment services, in its name (Payment Service Provider Agent status).
In addition to supporting crowdfunding platforms in their accreditation with the ACPR, CentralPay provides them with a ready-to-use payment infrastructure and expertise in security, regulatory and technical matters, in order to optimize their daily operational management.
¹ Participatory Financing France and Mazars, Panorama crowdfunding (2022)
