- loan-based crowdfunding: also known as ‘peer-to-peer lending’, this is where consumers lend money in return for interest payments and a repayment of capital over time
- investment-based crowdfunding: consumers invest directly or indirectly in new or established businesses by buying investments such as shares or debentures
These are regulated activities under the Financial Services and Markets Act 2000.
- donation-based crowdfunding: people give money to enterprises or organisations they want to support
- pre-payment or rewards-based crowdfunding: people give money in return for a reward, service or product (such as concert tickets, an innovative product, or a computer game)
See Chapter 15 of our perimeter guidance manual, which offers guidance on the scope of the Payment Services Regulations 2017.