The U.S. peer to peer (P2P) lending market size was estimated at USD 2.24 billion in 2025 and is projected to be worth around USD 12.76 billion by 2035, is expanding at a CAGR of 19% from 2026 to 2035. The AI intervention and huge support of Institutional investors to this market are encouraging new startups to join hands with the institutions, mainly for education purpose/lending. The full-fledged online operations are reducing the stress of late credit access.

U.S. Peer to Peer (P2P) Lending Market Statical Scope

The institutional capital holds great dominance and influence on the market, as most of the institutional investors are involved in funding for P2P platforms, helping new trends to enter the market space. The automated investing and blockchain unification are a boon to the P2P platforms seeking continuous advancement in the market. This highlights the valuable role of robo-advisors.

The expansion of small business financing is driving more demand for unsecured consumer non-business loans as SMEs find it difficult to deal with traditional banks. While the tech influence and digitization remain a huge support to the SMEs and B2B.

U.S. Peer to Peer (P2P) Lending Market Share, By Type, 2025 (%)

• Consumer Lending - The consumer lending segment dominated the market by 75% of the share due to the growing personal expenses like home renovation, family celebrations, education and credit card debt repayment. The P2P financing offers affordable home equity loans for repairs and renovations, confirming great expansion to the segment.
• Business Lending - The business lending segment covered 25% of the share, with most of the sole proprietors and SMEs preferring P2P platforms for their respective finance business operations that support the segment expansion in the market.

U.S. Peer to Peer (P2P) Lending Market Share, By End-user, 2025 (%)

• Non-Business Loans - The non-business loans segment dominated the market by 80% of the share due to the arrival of digital solutions to the P2P process, bolstering more alternatives that serves low ineterst rate for genuine borrowers. This also helps the investors to choose a fine investment deal via alternative income options. This brings a smart change in the segmental market overview.
• Business Loans - The business loans segment acquired 20% of the share, with more capital accessibility for borrowers seeking bank loans for startup purposes. The quick approval times are a perk for the firms and business enthusiasts, with more strength in the market.

U.S. Peer to Peer (P2P) Lending Market Share, By Loan Type, 2025 (%)

• Unsecured - The unsecured segment dominated the market by 65% of the share, due to the growing number of unsecured consumer loans, and the instant need for money doubles the demand for these loans. The big funding circle bolsters the base of unsecured business loans.
• Secured - The secured segment covered 35% of the share with the ‘true' term for secured loans with the use of collateral and co-borrowers. This brings sincere adoption of secured P2P loans that stimulates the market growth and recognition.

U.S. Peer to Peer (P2P) Lending Market Share, By Purpose Type, 2025 (%)

• Repaying Bank Debt - The repaying bank debt segment dominated the market by 50% of the share due to the commendable performance of AI-fuelled underwriting and alternative data that clears the path for smooth refinancing.
• Credit Card Recycling - The segment held 15% of the share with the efforts of P2P platforms in utilizing modern fintech underwriting for quick fund disbursement and the loan process. The credit card bill payment via P2P loan is a builds more trust for the segmental market.
• Education - The education segment covered 10% of the share due to the comprehensive funding models, highlighting the participation of crowdfunding ideas and community-funding, which are encouraging students to connect with the education (money) lenders.

Competitive Landscape

The market key players, such as LendingClub, Upstart, Prosper Marketplace, Funding Circle, Avant, LLC and Kiva, are using modern approaches to serve the best-in-class borrower experience with tech support. Avant use data fuelled CreditOS platform, helping borrowers struggling with the rules of traditional banks. The Upstart is an extended hand for borrowers lacking a credit score due to no loan experience. LendingClub acts as a digital hub with its current expansion of service for the home renovation sector. The leaders are the strong chain for the market to evolve into a one-stop hub for the financing struggles.

Segments Covered in the Report

By Type

• Consumer Lending
• Business Lending

By Loan Type

• Secured
• Unsecured

By End-user

• Non Business Loans
• Business Loans

By Purpose Type

• Repaying Bank Debt
• Credit Card Recycling
• Education
• Home Renovation
• Buying Car
• Family Celebration
• Others