Investments in sustainable agriculture facilitating green finance company InSoil has partnered with ConnectPay for its embedded finance solutions and compliance. This partnership will allow users to conduct all financial transactions within the InSoil website, marking a step in accelerating green finance adoption by removing friction and enhancing trust among eco-conscious investors and farmers.
Rapid climate change is one of the greatest threats to humanity with agriculture sector among the most significant contributors to environmental change. While the recipe for climate-neutral agriculture already exists, achieving this aim will require significant investments – €28-35 billion in the first year in the EU alone.
Lithuanian technology companies are also playing a part in the green transition. Sustainable finance company InSoil facilitates investments into agriculture loans starting from €100, encouraging farmers to switch to environmentally-friendly practices. The company aims to eliminate 1 gigaton of CO2 emissions by 2050.
To smooth out the investment process, InSoil has partnered with the fintech company ConnectPay, one of the largest BaaS companies in Lithuania. This partnership between an electronic money institution and an agriculture crowdfunding institution is the first of its kind in Lithuania.
All financial transactions in one platform
With ConnectPay providing InSoil with payment and compliance solutions, it will be possible to conduct all financial transactions within the same platform. This means additional security for large investments, as well as a higher standard of compliance and security in payments.
According to Laimonas Noreika, CEO and co-founder of InSoil, cooperation with the financial technology company was driven by the need to have a single partner to handle all the financial operations – from opening an IBAN account and collecting investments to opening, disbursing and repaying escrow accounts.
“To promote sustainable agricultural practices, we need to make financing as accessible as possible. Our partnership with ConnectPay facilitates the management of our international payments, as well as complex financial flows. Fully integrated financial operations and a higher standard of security on our website will also make it easier for European investors to contribute to the sustainable development of agriculture,” said Laimonas Noreika.
According to Marius Galdikas, CEO of ConnectPay, this partnership will help simplify the investment process. Users of the platform will be able to open personal accounts that support multi-currency settlements and make instant payments.
“Users will have access to their digital wallets and will be able to reinvest without the need to top up their account. It is also important to mention that this partnership will help to ensure the highest standards of payment security and compliance,” said Galdikas, highlighting the change in the consumer experience.
According to Galdikas, the financial technology company will become InSoil’s sole payment partner. The crowdfunding company currently counts more than 14,000 investors and loans from 2,500 farms. The company operates in Lithuania, Latvia, Poland, Bulgaria and Portugal, and plans to expand to other markets in the European Economic Area in the future.
“We are the first green finance platform to work with ConnectPay under the European Crowdfunding Regulation. We believe that this partnership will create new market standards in line with the recently implemented legislation, increase the efficiency and security of the platform, and enable its successful expansion into other European markets,” says Laimonas Noreika.
