Lithuanian Fintech Giant Paysera Announces STO
The first and the biggest Fintech company in Lithuania, Paysera, seeks to attract 2.5 million euro from STO (security token offerings).
Paysera can be called a pioneer of Fintech in Lithuania. The company started in 2004, and since then it has been reshaping the landscape of Lithuanian business and finance industries.
Presently, Paysera’s team consists of more than 150 people and it has more than 400,000 clients. It serves individuals and businesses and provides a wide range of features: online and SMS payments, a mobile app for payments, money transfers, and payments using QR codes. Additionally, the enterprise runs a self-service event ticketing platform called ”Paysera Tickets.”
While Paysera currently holds an electronic money institution license, the company is looking forward to obtaining a banking license and opening a specialized bank. Paysera is presently moderated by the Bank of Lithuania. Moreover, the company holds an international PCI DSS (Payment Card Industry Data Security Standard) certificate.
Kostas Noreika, the main founder and shareholder of the company, says that Paysera seeks a new and improved kind of banking. Banking that would suit the needs of a new generation of modern clients all around the world. In 2018, Paysera’s revenue was 9.7 million euro, making 2018 its most successful year ever. Inspired by the rapid growth and increasing needs for innovative banking, Paysera decided to accelerate its international expansion and boost its client engagement.
To begin with, what is an STO? STO is based on tokenised investment assets like stocks, bonds, and other securities. What makes the process unique and innovative? Unlike traditional investment, security offerings can be accounted at a brokerage firm and also registered on a digitally distributed blockchain ledger. Therefore, these digital assets are more transparent and protected from being corrupted or hacked. Many finance experts claim that security token offerings are the evolution of capital formation and can ensure higher security levels.
Current security token offerings are still on the rise in the world as many governments apply strict regulations. Although Lithuania is known to be a Mecca for blockchain-based solutions in Europe, Paysera will be among the first ones to implement a security token offering. Paysera’s representatives say that they chose this method not just for monetary gain, but more to increase the involvement and support of its customers and investors, and expand the business globally. They believe that their partners’ trust is what makes the company thrive.
As mentioned previously, the goal of Paysera’s STO is to attract private investors and raise 2.5 million euro. These securities will be tokenised and registered as smart contracts. The money is planned to be used for the company’s future enhancement. Paysera estimates that the investments will be used for:
- the e-money institution license in Bulgaria and further development;
- development and partner generation of ”Paysera Ltd”;
- getting a banking license and incorporation.
With the banking licence, the company intends to cooperate more easily with other banks, implement broader payment options, and improve their services.