Campaign starters should be aware of the various transaction processing systems on the market. After all, the tools a portal uses deal directly with the funds you so desperately want to raise. Although some companies have established a larger name in the industry compared to others, many may find the smaller systems more beneficial. Here are a few common transaction processing systems to assist with your portal research.


Late last year, WePay reported processing nearly $1.5 million daily, a 648% increase in crowdfunding activity since 2012. The fact that the company powers more than 33% of the top crowdfunding platforms says it all. With a simple API, portals can easily integrate WePay and feel confident in its performance. As WePay explains, it is a payment system designed to handle the extremities of crowdfunding — that is, the sudden bursts of funding that may cause alarm for many other interfaces.

Amazon Payments

Amazon leverages their brand to bring forth a flexible, inexpensive, and trusted payment experience. The various customer protection policies in place add to the authority of a given portal and its featured projects. Crowdfunders should consider the millions of active Amazon users directly tied to this payment system.


Despite “freezing” issues in the past, PayPal is a big name in crowdfunding industry. Their Adaptive Payments service supports various crowdfunding models, including rewards and donation. In recent news, the company announced a few updates concerning the issues many startups and nonprofits faced last year. Changes underway include early screening and an additional information request form for further verification and protection.


Recently, Stripe joined the ranks with two transaction processing systems — Stripe Connect and Transfer API. Stripe Connect allows platforms to save and verify customer credit cards, charging donations only once the goal has been met. This tool enables campaigns to sign up with Stripe and use it as a primary crowdfunding account. Transfer API, the other option, processes credit cards into Stripe Account and later transfers the funds to a US bank account.


A new contender on the list, BancBox recently released Invest API, a transaction solution for equity crowdfunding portals. In November, over eighteen platforms had already implemented this system, raising more than $4 million. The API approach allows portals to easily integrate the system.


More and more crowdfunding platforms are turning to Bitcoin. Bitcoin is the first decentralized peer-to-peer payment network with no central authority, though this does not mean the system lacks security or control. Due to the fact there is no central authority, it also means lower transaction fees and greater freedom — users can send and receive money from around the world whenever they so choose. So far the industry’s reception has been incredibly positive.

Please leave your experiences with these transaction tools below and/or recommend any not profiled in this post:

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