Swaper Review: Is it good? Don't invest before you read this! (2/2023)
Viru väljak 2, 10111 Tallinn
3.04 of 5Invest now on Swaper
0 of 5
Financed Loans (50%)
4 of 5
Interest & Risks
Ø Interest (50%)
4 of 5
Warning Signals (50%)
3.2 of 5
Auto Invest (20%)
5 of 5
Buyback Guarantee (20%)
5 of 5
Secondary Market (20%)
0 of 5
Tax Report (20%)
5 of 5
5 of 5
Invest free of charge
Automatic investment function
Currently 1 warning signal
No secondary market
- An alternative, early return option is available.
How good is Swaper?
If that's what you want to know, then keep reading.
We took a close look at the platform and tell you whether it's worth it.
In this test, we show you:
What is Swaper?
Swaper is a P2P platform based in Tallinn, Estonia, founded in 2016.
On Swaper, only P2P loans are offered by loan originators that belong to Wandoo Finance Group.
By definition, this makes Swaper a P2P marketplace.
However, since only the loan brokers from one company offer loans, we believe Swaper is a simple P2P platform.
Since its inception, the platform has funded more than €300 million worth of loans, making it one of the mid-sized P2P platforms in Europe.
How does Swaper work?
If you want to invest on Swaper, you first need to register as an investor and deposit money into your account.
You can deposit money via a standard bank transfer and, by the way, with the first deposit you also confirm the account to which you can withdraw money in the future.
For investing in loans, the platform charges a minimum fee of €10, and you can choose to invest manually or automatically via Auto Invest.
On Swaper, you can only invest on the primary market (initial issuance of loans), as unfortunately, there is no secondary market (loans from other investors) offered.
In the following, we would like to present the most important features of the platform.
Swaper is not regulated by any official financial market regulator.
And as far as we can tell, the platform has not seriously considered this step so far.
Therefore, we do not expect any regulation for the moment.
On average, the loans on Swaper offer an interest rate of 12%.
Loyalty bonus (VIP program)
On Swaper, an interest rate of 14% is possible with VIP status.
You can get this status if you have been invested with at least €5,000 over a period of 3 months.
In comparison, Swaper is at the average interest rate.
Currently, loans are offered by only 2 intermediaries, all of which belong to Wandoo Finance Group.
On Swaper, you can only invest in Payday Loans (mini loans) from Poland and Spain, which have maturity of one month.
On Swaper, you have the possibility to choose each loan you want to invest in individually.
This can be especially useful if you are just starting to invest and do not want to wait for Auto Invest to invest for you.
Often no credits available
The manual selection of credits only results in if credits are offered at all.
But this is Swaper rarely the case, so you should invest on Swaper automatically if you want to be there at all.
The platform offers you the Auto Invest function, a way to automatically invest in loans.
The following settings are possible:
Investment per loan,
Term of the Auto Invest,
Loan status (Current, Extended and Delayed),
Loan types (Short term, Mortgage, Leasing) and
Buyback (Yes or No).
Auto Invest makes a good and tidy impression.
All the important settings we would like to see in an auto invest function are present.
All loans on Swaper are offered with a Buyback Guarantee universally.
If a loan with Buyback Guarantee is delayed for more than 60 days, it will be bought back and investors will receive their original invested capital and lost interest as compensation.
The platform does not offer a secondary market.
However, you have the option to sell your loans back to the platform at any time.
This is not a full-fledged secondary market, but at least an early return option is offered at all.
Swaper offers you a handy feature where you can download the tax report for a reporting period.
A native app for iOS and Android is offered.
However, compared to the website, the app doesn't offer you any additional features, except for the push notifications.
The average ratings on Apple and Google Store show that most users are less satisfied with the app.
How much does investing on Swaper cost?
The platform is completely free for investors to use.
There are also no fees for deposits, withdrawals or other transactions.
Warning signals (red flags)
Currently, we would see the following warning signals on Swaper.
#1 No credits available
In our experience, there are often no loans offered on the primary market and if there are any loans offered at all, they are small.
Since there is no secondary market, there is no way around this disadvantage.
Especially for new amounts, it can therefore take a very long time until they are fully invested.
Frequently asked questions
Below, we address some questions that are often asked about the platform.
How secure (reputable) is Swaper? Is Swaper legal?
Swaper is not supervised by an official financial market regulator, which usually dispels any doubts about its seriousness.
Nevertheless, we would rate Swaper as a reputable platform.
There are two reasons in particular for this.
First, the platform has successfully financed loans worth 300 million, which would not be possible at all without a serious and legal business model.
And second, it mainly brokers the loans from Wandoo Finance Group, which is an established FinTech company.
How does Swaper make money?
Swaper makes money through the commissions charged by the loan brokers from Wandoo Finance Group.
Currently, this is the only way of income, as the use of the platform is free for investors.
Who owns Swaper?
Although the platform is so closely associated with Wandoo Finance Group, it does not hold any shares in Swaper.
As far as we found out, Swaper is 100% owned by Chief Operating Officer (COO) Marina Tyulinova.
Swaper is a safe P2P platform with a financed loan volume of more than €300 million. Its close ties with Wandoo Finance Group also speak for its reliability, although we did not take this into account in our overall rating.
With an average interest rate of 12% and a maximum of 14%, the platform is appreciated by investors who want to get a maximum return on their investments in P2P loans.
After a quick registration and an initial deposit, the automatic investment feature Auto Invest can be used to determine which loans to invest in within minutes.
However, there are also some weaknesses with Swaper.
For example, the biggest problem is certainly that new loans are rarely offered on the primary market: Often, and especially over long periods of time, there are no loans available to invest in.
This problem could be at least partially circumvented by a secondary market, but this is not offered.
On the whole, we consider Swaper to be a recommendable platform.
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Last updated on 05 October 2022