Peer-to-peer trades and transactions are slowly but surely regaining some of their lost momentum. As consumers see the evolution of payment methods and financial services, we often forget about the human element in our interactions. Rather than relying on third party service providers and platforms, conducting a deal with another person directly is of the utmost importance. Auxmoney and Fintex Capital are two European Fintech companies focusing on the peer-to-peer market.
The Power of Peer-to-peer Interaction
Buying goods or services online is quite convenient, and consumers can use a wide variety of payment methods to complete their transactions. But at the same time, there is very little peer-to-peer interaction taking place, other than receiving automated status updates and waiting for the deal be completed. Auxmoney sees things rather differently, as they are Germany’s leading peer-to-peer marketplace.
The primary goal of P2P marketplaces is to connect buyers and sellers directly, without having to deal with third parties along the way. Granted, this sounds a lot more convenient, and it brings a human element to buying and selling goods and services online. Moreover, it would be a far cheaper solution for both buyer and seller as the middleman fees would be removed entirely.
Running a peer-to-peer marketplace is quite appealing these days, and in the case of Auxmoney, they attract other Fintech players active in the P2P segment as well. Fintex Capital, a company focus on peer-to-peer lending in Europe, has recently investment in Auxmoney in an attempt to connect investors with P2P marketplace solutions.
As part of this investment, Fintex Capital issued a special Bond to institutional so they can deploy vast sums of money on P2P marketplaces without friction. Primarily established financial players, such as insurance companies, and private banks, can benefit from this opportunity. This particular Fintex Bond, as well as any other similar services issued by this company, are settled through Clearstream and Euroclear, making them capital markets friendly.
Fintex Capital Co-founder Robert Stafler told the media:
“Our aim is to take P2P lending ‘mainstream’ among institutional investors by making it as easy and hassle-free as possible for them to invest on the marketplaces they like. Fintex was specifically designed as an issuer of debt instruments that investors are intimately familiar with. In doing so, we provide a missing link between Europe’s leading marketplace lending platforms and global capital markets. We are pleased that the first Fintex investment is on Auxmoney, a market leader in one of Europe’s most resilient economies.”
It will be interesting to see how this investment by Fintex Capital will affect the Auxmoney peer-to-peer marketplace as a whole. The beautiful aspect of P2P trading is how anyone can buy or sell anything on these platforms, as long as it is no violation of the law. Interesting times are ahead for the Fintech sector; that much is certain.
Source: PR Newswire
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