Growing demand for peer-to-peer lending solutions for student loans, real estate, consumer credit, and small businesses is projected to augment the peer-to-peer lending market. The valuation of this market is expected to reach US$ 517.2 billion in 2024.
Increasing awareness about the benefits of P2P lending and reduced operating costs are projected to propel market growth over the next decade. By 2034, the market is projected to reach US$ 1,709.6 billion, expanding at a CAGR of 12.70%.
| Attributes | Key Insights |
|---|---|
| Peer-to-peer Lending Market Size (2024E) | US$ 517.2 billion |
| Market Valuation (2034F) | US$ 1,709.6 billion |
| Value-based CAGR (2024 to 2034) | 12.70% |
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The section below covers opportunities and trends in the adjacent peer-to-peer lending markets. These markets include the loan origination software market and the embedded finance market.
Core Market:
| Attributes | Peer-to-peer Lending Industry |
|---|---|
| CAGR (2024 to 2034) | 12.70% |
| Growth Factor | Rising deployment of internet-connected devices in banks |
| Opportunity | Players are expected to invest in exploiting the potential of AI |
| Key Trends | Favorable policies for peer-to-peer lending |
Loan Origination Software Market:
| Attributes | Loan Origination Software Market |
|---|---|
| CAGR (2024 to 2034) | 13.40% |
| Growth Factor | Surging automation and digitization in the lending industry |
| Opportunity |
|
| Key Trends | Enhanced customization to elevate the consumer experience |
Embedded Finance Market:
| Attributes | Embedded Finance Market |
|---|---|
| CAGR (2024 to 2034) | 16.5% |
| Growth Factor | Rapid digitization and integration of fintech services increasing the demand for embedded finance |
| Opportunity | Integration of embedded finance solutions with the latest technologies like machine learning, artificial intelligence, and the Internet of Things |
| Key Trends | Increasing adoption of embedded finance solutions by SMEs, cashless transactions, and money lending services to streamline multiple complex processes |
Principal Consultant
| Leading Business Model | Traditional |
|---|---|
| Value Share (2024) | 53.80% |
The traditional model for peer-to-peer lending is expected to gain a market share of 53.80% in 2024. The key advantage of using traditional peer-to-peer lending is competitive interest rates offered for investors to balance the risk of investors.
Further, peer-to-peer lending firms made it easy for borrowers to obtain finance and get loans funded quickly. This model also provides a flexible approach to borrowers, thus increasing its attractiveness among users.
| Leading End User | Consumer Credit |
|---|---|
| Value Share (2024) | 28.40% |
The consumer credit segment is projected to accumulate a 28.40% share in the year 2024. The segment is expanding at a healthy pace and is anticipated to gain numerous remunerative opportunities in upcoming years. The key factor that is influencing the segment’s growth is the robust adoption of consumer credit loans among organizations and consumers to provide financial convenience.
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| The United States | 12.70% |
| Germany | 8.40% |
| Japan | 9.10% |
| China | 14.80% |
| Australia & New Zealand | 12.20% |
The peer-to-peer lending market in the United States is expanding at a CAGR of 12.70%. The market has a crucial role in maintaining North America’s prominence on a global scale.
The thrilling growth assumed for the United States market is due to numerous fintech companies in the country that are investing large sums in research and development activities. As new features are being introduced to platform-based business models, the convenience and demand for them are peaking.
The new features are also aimed at reducing the theft and fraud activities in the P2P lending. The surging adoption of P2P lending platforms in the BFSI sector in the United States is also propelling market growth.
While the alternative lending market is flourishing in the United States, opportunities are yet limited for retail investors. Presently, the go-to option for investment in P2P loans among United States investors is Proper. An indirect way to invest in P2P loans is possible. However, it is less known among the United States citizens, justifying its lower adoption.
Germany prides itself on having an established and diverse P2P lending market in Europe. According to the latest FMI estimates, the market is set to record a CAGR of 8.40% over the upcoming period.
The P2P platform that operates in Germany is Bergfurst, which is a real estate lender. Recently, the company hit the mark of US$ 217.31 million lending milestone.
Thanks to Germany’s long track record in P2P lending, it has developed a familiarity with the sector for both lenders and borrowers. Many of the leading European P2P brands like Iwoca and EstateGuru have field offices in Germany.
The German regulation is known to be stringent when it comes to crowd lenders and various fintech lending platforms. So, it turns out that despite having a huge population of lenders and borrowers and relative wealth, the country is home to less than 10% of Europe’s P2P lending platforms.
However, German investors come under the category of active P2P lenders on the continent. The incoming ECSPR, which is short for European Crowdfunding Service Providers Regulation, is likely to make way for more German investors into the P2P fold as it makes it easy for European crowdlenders to function smoothly across EU countries.
This regulation is further projected to accelerate the pace of innovation in Germany, which is going to appreciate the market’s value in the following years.
The peer-to-peer lending market in Japan is expanding at a CAGR of 9.10% in the next ten years. In the historical period, the market grew gradually in Japan owing to many lending options available to customers. The banks have been serving the customers well, but the fintech entrepreneurs have pivoted to a niche, which was not served well by the mega banks.
The journey of growth for the peer-to-peer market has been supported by the government by relaxing its regulations. The market is further projected to expand owing to partnerships, acquisitions, mergers, and constant improvements.
In 2022, Crowd Credit, a P2P lending platform in Japan, by acquired by Bankers Holding. The Tokyo startup provides funds gathered from Japan individual investors to businesses in developing countries in Eastern European regions and South America. Upon the acquisition, Crowd Credit still maintains its current brand name as well as management structure.
In China, the peer-to-peer lending market is projected to observe rapid growth, expanding at a CAGR of 14.80%, outpacing that of the United States by 2.10%. The country is expected to make a substantial contribution to the regional market.
The market has a noteworthy potential since public sector banks pay lower deposit rates and are hesitant to lend loans to small businesses. Lufax, for instance, is a famous peer-to-peer lending platform in China that offers 6-8% interest against the 1.75% provided by the Bank of China.
The rising count of SMEs in the region is supporting the market growth. This is projected to increase the acceptability of consumer credit loans among different end users. Additionally, robust digitization, as well as penetration of internet-connected services in banks, are some other critical industry growth factors that are propelling the peer-to-peer lending market.
The peer-to-peer lending industry in Australia and New Zealand is expected to expand at a CAGR of 12.20% in the next ten years. A growing count of fintech firms in the market are propelling the market growth.
In July 2023, Revolut extended its financial services to New Zealand. The London-based fintech company plans to provide many services, such as P2P payments, in this market. It has already welcomed 26,000 new users in the country.
The financial app charges no fees on foreign exchange transactions and supports more than 200 currencies. The app also allows users to hold five top currencies, including AUD, EUR, NZD, GBP, and USD and is combined with a digital payment card.
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Sites that help investors invest in peer-to-peer lending by making it easy and transparent include Prosper, Kiva, and Upstart.
Kiva is not just another peer-to-peer lending platform. It is designed for a higher purpose, with lending activities zeroing in on micro businesses and individual entrepreneurs in low-and middle-income countries.
Kiva was built with the mission to reach communities that are underserved and help them thrive with increased financial access. The company posts loans that can upgrade lives and open opportunities.
Prosper, founded in 2005, was the first peer-to-peer lending site in the United States. From then on it has served beyond 1.4 million borrowers by extending US$ 23 billion in loan funding. Investors can show their contribution by funding as little as US$ 25.
The auto invest tool of Prosper helps you create a portfolio according to the rating mix that an individual prefers, with many options, so it’s easy to diversify.
Upstart is a popular AI-powered peer-to-peer lending site, which is made for investors and borrowers alike. The company prides itself on gross average returns of 11.2% annually, less than the anticipated annualized loss rate.
Only accredited investors can invest in peer-to-peer lending with Upstart. SEC defines accredited investors as someone with a net worth of >US$ 1 million or having an income of US$ 2,00,000.
New Developments Transforming the Peer-to-peer Lending Marketplace
Current projections of the market indicate a valuation of US$ 517.2 billion in 2024.
Looking ahead to 2034, the current forecast projects a CAGR of 12.7% for the industry.
FMI predicts the market to reach US$ 1,709.6 billion by the year 2034.
The consumer credit segment is predicted to hold a significant market share during the forecast period.
The United States and China are predicted to offer lucrative opportunities for investors and stakeholders.
CommonBond Inc., Funding Circle Limited, and Upstart Network Inc. are powerful players in the peer-to-peer lending industry.
1. Executive Summary 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 4.1. Historical Market Size Value (US$ Million) Analysis, 2019 to 2023 4.2. Current and Future Market Size Value (US$ Million) Projections, 2024 to 2034 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Business Model 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Business Model, 2019 to 2023 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Business Model, 2024 to 2034 5.3.1. Traditional 5.3.2. Marketplace 5.4. Y-o-Y Growth Trend Analysis By Business Model, 2019 to 2023 5.5. Absolute $ Opportunity Analysis By Business Model, 2024 to 2034 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By End Use, 2019 to 2023 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By End Use, 2024 to 2034 6.3.1. Consumer Credit 6.3.2. Mall Business 6.3.3. Student Loans 6.3.4. Real Estate 6.4. Y-o-Y Growth Trend Analysis By End Use, 2019 to 2023 6.5. Absolute $ Opportunity Analysis By End Use, 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 7.1. Introduction 7.2. Historical Market Size Value (US$ Million) Analysis By Region, 2019 to 2023 7.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2024 to 2034 7.3.1. North America 7.3.2. Latin America 7.3.3. Western Europe 7.3.4. Eastern Europe 7.3.5. South Asia and Pacific 7.3.6. East Asia 7.3.7. Middle East and Africa 7.4. Market Attractiveness Analysis By Region 8. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 8.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 8.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 8.2.1. By Country 8.2.1.1. USA 8.2.1.2. Canada 8.2.2. By Business Model 8.2.3. By End Use 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By Business Model 8.3.3. By End Use 8.4. Key Takeaways 9. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 9.2.1. By Country 9.2.1.1. Brazil 9.2.1.2. Mexico 9.2.1.3. Rest of Latin America 9.2.2. By Business Model 9.2.3. By End Use 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Business Model 9.3.3. By End Use 9.4. Key Takeaways 10. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 10.2.1. By Country 10.2.1.1. Germany 10.2.1.2. UK 10.2.1.3. France 10.2.1.4. Spain 10.2.1.5. Italy 10.2.1.6. Rest of Western Europe 10.2.2. By Business Model 10.2.3. By End Use 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Business Model 10.3.3. By End Use 10.4. Key Takeaways 11. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 11.2.1. By Country 11.2.1.1. Poland 11.2.1.2. Russia 11.2.1.3. Czech Republic 11.2.1.4. Romania 11.2.1.5. Rest of Eastern Europe 11.2.2. By Business Model 11.2.3. By End Use 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Business Model 11.3.3. By End Use 11.4. Key Takeaways 12. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 12.2.1. By Country 12.2.1.1. India 12.2.1.2. Bangladesh 12.2.1.3. Australia 12.2.1.4. New Zealand 12.2.1.5. Rest of South Asia and Pacific 12.2.2. By Business Model 12.2.3. By End Use 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Business Model 12.3.3. By End Use 12.4. Key Takeaways 13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 13.2.1. By Country 13.2.1.1. China 13.2.1.2. Japan 13.2.1.3. South Korea 13.2.2. By Business Model 13.2.3. By End Use 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Business Model 13.3.3. By End Use 13.4. Key Takeaways 14. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 14.2.1. By Country 14.2.1.1. GCC Countries 14.2.1.2. South Africa 14.2.1.3. Israel 14.2.1.4. Rest of MEA 14.2.2. By Business Model 14.2.3. By End Use 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Business Model 14.3.3. By End Use 14.4. Key Takeaways 15. Key Countries Market Analysis 15.1. USA 15.1.1. Pricing Analysis 15.1.2. Market Share Analysis, 2023 15.1.2.1. By Business Model 15.1.2.2. By End Use 15.2. Canada 15.2.1. Pricing Analysis 15.2.2. Market Share Analysis, 2023 15.2.2.1. By Business Model 15.2.2.2. By End Use 15.3. Brazil 15.3.1. Pricing Analysis 15.3.2. Market Share Analysis, 2023 15.3.2.1. By Business Model 15.3.2.2. By End Use 15.4. Mexico 15.4.1. Pricing Analysis 15.4.2. Market Share Analysis, 2023 15.4.2.1. By Business Model 15.4.2.2. By End Use 15.5. Germany 15.5.1. Pricing Analysis 15.5.2. Market Share Analysis, 2023 15.5.2.1. By Business Model 15.5.2.2. By End Use 15.6. UK 15.6.1. Pricing Analysis 15.6.2. Market Share Analysis, 2023 15.6.2.1. By Business Model 15.6.2.2. By End Use 15.7. France 15.7.1. Pricing Analysis 15.7.2. Market Share Analysis, 2023 15.7.2.1. By Business Model 15.7.2.2. By End Use 15.8. Spain 15.8.1. Pricing Analysis 15.8.2. Market Share Analysis, 2023 15.8.2.1. By Business Model 15.8.2.2. By End Use 15.9. Italy 15.9.1. Pricing Analysis 15.9.2. Market Share Analysis, 2023 15.9.2.1. By Business Model 15.9.2.2. By End Use 15.10. Poland 15.10.1. Pricing Analysis 15.10.2. Market Share Analysis, 2023 15.10.2.1. By Business Model 15.10.2.2. By End Use 15.11. Russia 15.11.1. Pricing Analysis 15.11.2. Market Share Analysis, 2023 15.11.2.1. By Business Model 15.11.2.2. By End Use 15.12. Czech Republic 15.12.1. Pricing Analysis 15.12.2. Market Share Analysis, 2023 15.12.2.1. By Business Model 15.12.2.2. By End Use 15.13. Romania 15.13.1. Pricing Analysis 15.13.2. Market Share Analysis, 2023 15.13.2.1. By Business Model 15.13.2.2. By End Use 15.14. India 15.14.1. Pricing Analysis 15.14.2. Market Share Analysis, 2023 15.14.2.1. By Business Model 15.14.2.2. By End Use 15.15. Bangladesh 15.15.1. Pricing Analysis 15.15.2. Market Share Analysis, 2023 15.15.2.1. By Business Model 15.15.2.2. By End Use 15.16. Australia 15.16.1. Pricing Analysis 15.16.2. Market Share Analysis, 2023 15.16.2.1. By Business Model 15.16.2.2. By End Use 15.17. New Zealand 15.17.1. Pricing Analysis 15.17.2. Market Share Analysis, 2023 15.17.2.1. By Business Model 15.17.2.2. By End Use 15.18. China 15.18.1. Pricing Analysis 15.18.2. Market Share Analysis, 2023 15.18.2.1. By Business Model 15.18.2.2. By End Use 15.19. Japan 15.19.1. Pricing Analysis 15.19.2. Market Share Analysis, 2023 15.19.2.1. By Business Model 15.19.2.2. By End Use 15.20. South Korea 15.20.1. Pricing Analysis 15.20.2. Market Share Analysis, 2023 15.20.2.1. By Business Model 15.20.2.2. By End Use 15.21. GCC Countries 15.21.1. Pricing Analysis 15.21.2. Market Share Analysis, 2023 15.21.2.1. By Business Model 15.21.2.2. By End Use 15.22. South Africa 15.22.1. Pricing Analysis 15.22.2. Market Share Analysis, 2023 15.22.2.1. By Business Model 15.22.2.2. By End Use 15.23. Israel 15.23.1. Pricing Analysis 15.23.2. Market Share Analysis, 2023 15.23.2.1. By Business Model 15.23.2.2. By End Use 16. Market Structure Analysis 16.1. Competition Dashboard 16.2. Competition Benchmarking 16.3. Market Share Analysis of Top Players 16.3.1. By Regional 16.3.2. By Business Model 16.3.3. By End Use 17. Competition Analysis 17.1. Competition Deep Dive 17.1.1. Prosper Marketplace, Inc. 17.1.1.1. Overview 17.1.1.2. Product Portfolio 17.1.1.3. Profitability by Market Segments 17.1.1.4. Sales Footprint 17.1.1.5. Strategy Overview 17.1.1.5.1. Marketing Strategy 17.1.2. CommonBond Inc. 17.1.2.1. Overview 17.1.2.2. Product Portfolio 17.1.2.3. Profitability by Market Segments 17.1.2.4. Sales Footprint 17.1.2.5. Strategy Overview 17.1.2.5.1. Marketing Strategy 17.1.3. Upstart Network Inc. 17.1.3.1. Overview 17.1.3.2. Product Portfolio 17.1.3.3. Profitability by Market Segments 17.1.3.4. Sales Footprint 17.1.3.5. Strategy Overview 17.1.3.5.1. Marketing Strategy 17.1.4. Funding Circle Limited 17.1.4.1. Overview 17.1.4.2. Product Portfolio 17.1.4.3. Profitability by Market Segments 17.1.4.4. Sales Footprint 17.1.4.5. Strategy Overview 17.1.4.5.1. Marketing Strategy 17.1.5. CircleBack Lending, Inc. 17.1.5.1. Overview 17.1.5.2. Product Portfolio 17.1.5.3. Profitability by Market Segments 17.1.5.4. Sales Footprint 17.1.5.5. Strategy Overview 17.1.5.5.1. Marketing Strategy 17.1.6. Peerform 17.1.6.1. Overview 17.1.6.2. Product Portfolio 17.1.6.3. Profitability by Market Segments 17.1.6.4. Sales Footprint 17.1.6.5. Strategy Overview 17.1.6.5.1. Marketing Strategy 17.1.7. Social Finance Inc. 17.1.7.1. Overview 17.1.7.2. Product Portfolio 17.1.7.3. Profitability by Market Segments 17.1.7.4. Sales Footprint 17.1.7.5. Strategy Overview 17.1.7.5.1. Marketing Strategy 17.1.8. Daric Inc. 17.1.8.1. Overview 17.1.8.2. Product Portfolio 17.1.8.3. Profitability by Market Segments 17.1.8.4. Sales Footprint 17.1.8.5. Strategy Overview 17.1.8.5.1. Marketing Strategy 18. Assumptions & Acronyms Used 19. Research Methodology
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Peer-to-peer Lending Market
