Goparity Case Study | Impact Investing Platform Case Study

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Products

e-Wallets

Ledger Management

Rails

Interac e-Transfer^®

Use Case

Impact Investing Platform

Integration Time

10 weeks

Intro

Goparity is transforming the Canadian financial landscape by connecting investors with socially and environmentally beneficial projects. As the first platform of its kind in Canada, inspired by its successful European counterpart, Goparity not only facilitates investments but also serves as a community hub aimed at making sustainable investing accessible to all Canadians. Successfully launching this platform required overcoming significant compliance and payment processing challenges, necessitating a partnership with a capable payment provider.

"We truly believe in a future where everyone has access to making tangible investments and working with key partners to do that is how we'll make this successful."

Elliot Warner, Director of Technology, Goparity Canada

The Problem

Goparity is entering a challenging Canadian market where impact investing is still emerging. While promoting a relatively new investment model, the company had to navigate complex financial regulations and manage intricate banking and payment processes. Goparity's crowd-lending business model requires a balance between volume and efficiency. Effective operations and technology are critical, allowing a broad user base to invest with minimal resource expenditure. This setup is vital to support diverse investment preferences without maintaining robust accounting standards.

Core Challenges Identified

1. Building Payment Infrastructure

Initially, Goparity considered developing an in-house payment system but faced prohibitive costs, substantial resource demands, and regulatory complexities. These challenges would have delayed the launch and increased operational expenses, prompting the shift to partner with a recognized payment provider.

2. Payment Processing Complexities

Despite many available processors, few could meet the specific demands of an impact investment platform. The critical need for e-wallet integration to facilitate smooth transactions became apparent as GoParity struggled with processors that could not support essential features, leading to increased overhead and complex user interactions.

3. Regulatory Compliance Hurdles

As a newcomer, Goparity found adhering to the Ontario Security Commission's worked with the OSC to accelerate their launch and ensure compliance to some of the world's strictest standards. These regulations presented significant obstacles in aligning their business operations with legal standards.

4. Fostering Platform Trust

Establishing trust is crucial in an online-only environment, particularly in a market new to impact investing. The absence of physical interactions necessitated a partnership with a reputable and leading brand to enhance credibility and strengthen investor confidence.

5. Operational Challenges in Transaction Management

Existing payment solutions failed to efficiently handle small investments, leading to prolonged settlement times and a poor user experience. This inefficiency resulted in lower user retention and challenges in attracting new investors.

The Solution

"The primary feature that drew us to VoPay was the e-wallet capability. We recognized early on that for our platform to operate efficiently, it was essential for users to have e-wallets. This functionality allows users to deposit funds easily, enabling a seamless flow of transactions between borrowers and lenders. By minimizing transaction frequency and overhead, everything can be managed directly on the platform, allowing funds to be reinvested and their impact and returns to compound effectively."

Elliot Warner, Director of Technology, Goparity Canada

• Strategic Partnership with VoPay: Faced with the complexities of creating an in-house payment infrastructure, Goparity chose to partner with VoPay. This strategic alliance was pivotal in navigating the intricacies of financial transactions and regulatory compliance effectively. VoPay’s expertise in fintech solutions enabled GoParity to bypass the substantial development costs and complexities associated with payment systems.

• Comprehensive Regulatory Compliance and Testing: VoPay played a crucial role in helping Goparity adapt to the regulatory landscape. By integrating VoPay’s solutions within a controlled test environment, Goparity could conduct thorough testing without financial risk, ensuring full compliance with Canadian financial laws before launching.

• Advanced Payment Technology Integration: VoPay’s technology was seamlessly integrated into Goparity’s platform, introducing significant automation and efficiency. This integration included sophisticated e-wallet capabilities and comprehensive ledger management, essential for the platform’s operation and scalability.

• Digital Wallets and Interac e-Transfer Functionality: VoPay’s digital wallet technology significantly streamlined the funding process, enabling easy fund uploads and efficient transaction flow between investors and borrowers. This reduced transaction overheads and allowed for the continuous reinvestment and compounding of returns. Additionally, VoPay’s Interac e-Transfer functionality dramatically accelerated the investment process. Investors can now complete transactions—from signup to investment—in as little as 10-15 minutes, thanks to VoPay’s efficient rapid payments, hooks, and ledgers and Goparity’s automatic KYC and suitability.

How It Works

The Results

• Enhanced Transaction Efficiency and User Engagement: VoPay's integration reduced Goparity's transaction times from days to minutes. This significant improvement not only streamlined capital flows but also increased user engagement by 30%, enhancing market reach and investor satisfaction.

• Cost Reduction and Operational Streamlining: Partnering with VoPay allowed Goparity to bypass the high costs of developing an in-house payment infrastructure, reallocating these savings to enhance core business functions. The integration of VoPay’s advanced dashboard and ledger management led to a 25% improvement in financial operations efficiency.

• Building Trust and Credibility: VoPay’s robust security measures and established reputation substantially bolstered Goparity’s credibility. This enhancement has been instrumental in reinforcing investor confidence and securing the platform's reliability, pivotal as GoParity expands its market presence.

• Market Expansion and Leadership in Impact Investing: Leveraging VoPay's technological advancements, Goparity has expanded its reach across Canada, establishing itself as a leader in the impact investing sector. The platform's capacity to offer quick, secure, and meaningful investment opportunities continues to attract a diverse group of socially and environmentally conscious investors.

• Increased User Satisfaction and Retention: The efficient and streamlined transaction process enabled by VoPay’s solutions has led to an increase in user satisfaction and a significant reduction in user drop-off rates. This improvement has not only fostered trust but also enhanced loyalty, contributing to a stronger, more engaged user base.

"VoPay's credentials and experience in secure payment processing significantly enhance user trust in our platform. This transparency is vital in the new and growing field of impact investing, where our commitment to openness and education is fundamental to our success."

Blake Bunting, Founder & Director of Business Development, Goparity