Peer to Peer (P2P) Lending Market (By Type: Consumer Lending, Business Lending; By End User: Consumer Credit Loans, Small Business Loans, Student Loans, Real Estate Loans; By Business Model: Marketplace Lending, Traditional Lending) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030

The global peer to peer (P2P) lending market size was valued at US$ 83.79 billion in 2021 and it is expected to hit over US$ 705.81 billion by 2030 with a registered CAGR of 26.7% from 2022 to 2030.

Growth Factors

The peer to peer (P2P) lending is a process or procedure of lending money or loans to businesses as well as individuals through online applications or website. The peer to peer (P2P) lending services are quite inexpensive in nature. At the same time, peer to peer (P2P) lending is considered as unsecured form of financial service. One of the key factors driving the growth of global peer to peer (P2P) lending market is growing need and requirement of finance and loans.

The operating fees of peer to peer (P2P) lending platforms are quite less as compared to traditional financial services. The loans on peer to peer (P2P) lending platforms are approved within a short period of time. All of these benefits are paving way for the growth of the global peer to peer (P2P) lending market during the forecast period.

The peer to peer (P2P) lending market is also growing due to rising adoption of digitalization in the banking sector. Due to peer to peer (P2P) lending platforms, the transactions have become more transparent in nature. On the other hand, the strict government regulations for approvals of loans are hindering the growth of the global peer to peer (P2P) lending market. In addition, lack of awareness among people regarding peer to peer (P2P) lending, is also restricting the expansion of global peer to peer (P2P) lending market.

Report Scope of the Peer to Peer Lending Market

Furthermore, the establishments of small and medium sized enterprises are also driving the demand for peer to peer (P2P) lending in the market globally. The peer to peer (P2P) lending platforms helps in the reduction of costs related to office setup, staffing, and maintenance. Thus, all of these factors are boosting the growth of peer to peer (P2P) lending market.

The impact of the COVID-19 pandemic on the growth of the global peer to peer (P2P) lending market is positive in nature. The major businesses and organizations faced enough problems regarding finance and operations. The peer to peer (P2P) lending platforms helps these organizations to raise funds for their operations.

Another factor driving the growth of global peer to peer (P2P) lending market is technological advancements. The technologies such as internet of things and blockchain technology are helping banking sectors to enhance their growth in global market. This factor is supporting the growth of the global peer to peer (P2P) lending market over the forecast period. In addition, the factors such as growing infrastructural development in building and construction sectors as well as surge in the number of students are also propelling the growth and development of global peer to peer (P2P) lending market.

The primary strategies used by key players in the global peer to peer (P2P) lending market are acquisitions, partnerships, as well as product creation and upgradation. In addition, the government of developed and developing regions is also collaborating with market players for the growth and expansion of the global peer to peer (P2P) lending market.

Type Insights

The consumer lending segment dominated the peer to peer (P2P) lending market in 2021. The consumer lending in the peer to peer (P2P) lending market is taken place between two individuals. The factors such as rising disposable income and rapid urbanization are driving the growth of the segment in peer to peer (P2P) lending market over the forecast period.

The business lending segment is fastest growing segment of the peer to peer (P2P) lending market in 2021. The business lending is gaining traction in the peer to peer (P2P) lending market. The growing number of small and medium sized enterprises as well as start ups is driving the demand for peer to peer (P2P) lending in the global market.

End User Insights

The consumer credit loan segment dominated the peer to peer (P2P) lending market in 2021. The consumer credit loan is loans for short term. This type of loans is provided in the form of cash loans or sales credit. The growth of the segment is attributed to the growing adoption and acceptance of consumer credit loans among consumers as well as businesses for funds.

The student loan segment is fastest growing segment of the peer to peer (P2P) lending market in 2021. A student loan is a sort of loan that is used to assist students in paying for post-secondary education and associated fees such as coaching and tuition, books, and supplies. Due to growing number of students globally, the demand for student loan is rising. This factor is contributing towards the growth of peer to peer (P2P) lending market over the forecast period.

Region Insights

North America dominated the peer to peer (P2P) lending market in 2021. The growth of peer to peer (P2P) lending market in North America region is due to growing adoption of peer to peer (P2P) lending platforms. The adoption of innovative technologies is also driving the demand for peer to peer (P2P) lending platforms in the region.

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. China dominates the peer to peer (P2P) lending market in Asia-Pacific region. The peer to peer (P2P) lending market is growing in Asia-Pacific region due to growing number of small and medium sized enterprises. The government of emerging nations such as China and India are constantly taking efforts for the promotion of cashless technologies. This factor is boosting the growth of peer to peer (P2P) lending market in the region.

Key Developments

• Prosper’s team launched a website in June 2018 to improve customer experience. They are mostly concerned with the site’s ease of use and responsiveness. In terms of website upgrades, they completely redesigned two key areas: the account dashboard and the auto invest setup.

• Faircent.com had begun facilitating loans in COVID-19 low impact Green Zones in May 2020 to capitalize on the untapped market. 

• Zopa sought for a banking license in 2016 in order to grow its business into a broader range of financial services. Due to the introduction of Open Banking in the UK, a company with new fintech products acquired a full banking license in 2018.  

• Matrix Partners, a U.S. based investment group, invested around $1.7 million in Liquiloans, an Indian peer to peer (P2P) lending platform, in January 2019. The funds will be used to establish the company as a brand and gain credibility.

Some of the prominent players in the global peer to peer (P2P) lending market include:

• Avant LLC
• Zopa Bank Limited
• Funding Circle
• Social Finance Inc.
• Kabbage Inc.
• RateSetter
• Lending Club Corporation
• Prosper Funding LLC
• LendingTree LLC
• OnDeck

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Type

• Consumer Lending
• Business Lending

By End User

• Consumer Credit Loans
• Small Business Loans
• Student Loans
• Real Estate Loans

By Business Model

• Marketplace Lending
• Traditional Lending

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa